Answer:
Elastic
Sports car
Most Elastic: Boot-Cut Jeans
In Between: Pants
Least Elastic: Clothing
Less
Explanation:
A good with many close substitutes is likely to have relatively Elastic demand, since consumers can easily choose to purchase one of the close substitutes if the price of the good rises.
Sports Car has the most elastic demand
If the price of gasoline is relatively high for a long time, consumers are more likely to buy more fuel-efficient cars or switch to alternatives like public transportation. Therefore, the demand for gasoline is Less elastic in the short run than in the long run.
Answer:
Teddy's opportunity cost of <u>leisure</u> has risen and because for Teddy the substitution effect of the wage hike is <u>greater</u> than the income effect.
Explanation:
Wage rate is considered as the opportunity cost of leisure.
Along these lines, increment in wage rate infers an expansion in circumstance cost of recreation.
In the event that a laborer works progressively after pay increment, at that point replacement impact of compensation increment overwhelms or is more prominent than salary impact of pay increment and the other way around.
Answer:
Debit : Dividends $50,000
Credit : Cash $50,000
Explanation:
Dividend calculation = 500,000 shares x $1 x 1/10 = $50,000
To record the dividend, the following entry is made :
Debit : Dividends $50,000
Credit : Cash $50,000
Answer:
True.
Explanation:
If investors prefer firms that retain most of their earnings, then a firm that wants to maximize its stock price should set a low payout ratio.
And her in a case of a retired individual who lives on his or her investment income, then it would make sense for this person to prefer stocks with high payouts so he or she could receive cash without going to the trouble and expense of selling stocks. On the other hand, it would make sense for an individual who would just reinvest any dividends received to prefer a low-payout company because that would save him or her taxes and brokerage costs.
Answer: Expectancy-Outcome Values Theory
Explanation:
The Expectancy-Outcome Values Theory is one that is quite popular in many fields ranging from health to economics as it aims to explain that human behavior is governed by expectations of events.
Under the Expectancy-Outcome Values Theory, people will evaluate the cost, benefit, or value related to making a change in a particular attitude, value, belief, or behavior to decide if it is worthwhile or not.
For most if not all decisions taken therefore, there goes into it quite a lot of mental calculations involving the effects of an event before a decision is made.