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11111nata11111 [884]
3 years ago
11

The income effect of a price change: A. produces a backward-bending income-consumption curve. B. is always positive. C. reinforc

es the substitution effect in the normal good case. D. is always larger than the substitution effect in the inferior good case.
Business
1 answer:
MArishka [77]3 years ago
6 0

Answer: The correct answer is "C. reinforces the substitution effect in the normal good case.".

Explanation: When the Price of a Good changes, a change occurs in the Real Income. If the price of the Good falls, leaving the prices of the other Goods and the nominal Income constant, with the same Nominal Income you can acquire more of the Good whose Price fell, of other Goods or of all of them.  The opposite occurs when the Price of the good rises. Thus, a change in prices induces a change in real income.

In the case of normal goods the income effect of a price change reinforces the substitution effect because people prefer not to buy that good and <u>replace</u> it with a lower one that costs a lower price.

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Just-in-time inventory (JIT) systems: a. are used only by manufacturing firms. b. provide a buffer stock of inventory for a comp
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The correct answer is d. are used to reduce inventory holding costs.

Explanation:

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3 years ago
Marcos wants to buy Lucia's land, but she refuses to sell. Marcos begins using subpoenas, court orders, and other formal legal p
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<u>Full question:</u>

Marcos wants to buy Lucia’s land, but she refuses to sell. Marcos begins using subpoenas, court orders, and other formal legal procedures in an unrelenting effort to force Lucia to sell. This is

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<u>Answer:</u>

This is   abuse of process

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Abuse of process assigns to the inappropriate handling of a civil or criminal justice system for an unintended, wicked, or malicious reason. It is the hateful and intentional abuse of frequently published civil or criminal court means that is not supported by the underlying legal action.

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