Answer:
the fact that the higher price of Raisin Bran relative to its substitutes, such as Cheerios, causes consumers to buy less Raisin Bran.
Explanation:
the substitution effect arises when as a result of a rise in the price of a good, the good becomes more expensive relative to its substitutes. Consumers not consume less of the good and more of the substitute. This leads to a movement up along the demand curve for that goods and not a movement along the demand curve for the good and not a shift of the demand curve.
If the price of the good increases. The good becomes cheaper when compared with substitutes. As a result, the demand for the good increases while that of the substitutes decreases.
The income effect is when an increase in price lowers consumer's purchasing power, holding money income constant.
Answer:
see below
Explanation:
A firm may either opt to shutdown or declare bankruptcy if its making losses. A shutdown will involve ceasing operations and disposing of assets to pay creditors. Declaring bankruptcy shields the business from debt obligations or seizing of assets by its creditors.
Many businesses opt to declare bankruptcy because shutting down is costly. Except for properties, other assets are likely to be liquidated at costs below their book value. With the burden of debts shelved for some time, a business has a chance of bouncing back to profitability. A loss-making firm whose price is above the average variable cost should continue operating.
Answer:
Stillman should register as an investment adviser representative in state P.
Explanation:
Investment adviser representatives (IARs) must necessarily register in the state that they work in. In this case, Rock, Feller, and Standard (RFS) must be registered in all the states where it has offices functioning, but Stillman only needs to register in the state where his office is. If Stillman worked half year in state P and the other half in state M, then he would need to register in both states. But since this is not the case, then registering in state P should be enough.
Answer:
The responses to the given choices can be defined as follows:
Explanation:
Assume is the investment. Each original Class A investment is of the net-front unburden. The portfolio will be worth four years from now:
You will place the total of 
on class B shares, but only 
will be paid 
at a rate of 
and you'll pay a 
back-end load charge if you sell for a four-year period.
After 4 years, your portfolio worth would be:
Their portfolio worth would be: after charging the backend load fee:
When the horizon is four years, class B shares are also the best option.
Class A shares would value from a 12-year time frame:
In this case, no back-end load is required for Class B securities as the horizon is larger than 5 years.
Its value of the class B shares, therefore, is as follows:
Class B shares aren't any longer a valid option in this, prolonged duration. Its impact on class B fees of 
cumulates over a period and eventually outweighs the 
the burden of class A shareholders.
