Answer:
Option b (Substitution.....services) is the appropriate choice.
Explanation:
- The above leads to calculating difficulties as well as the failure throughout the Index to identify better products and services contributing to less precise inflation outcomes.
- It does not take account of the replacement facilities, which arise when an increase throughout the price of one promising recommendation to a replacement including its good by another, which often increases the costs of one quality.
The other options are not related to the given scenario. So the above is the correct choice.
Answer:
(b) $ 43,750 increase
Explanation:
The computation of the effect on operating income is shown below:
= Contribution margin per unit × special order
where,
Contribution margin per unit = Selling price per unit - Variable expense per unit
= $7.50 - $5.75
= $1.75
And, the special order is of 25,000 pairs
Now put these values to the above formula
So, the value would equal to
= $1.75 × 25,000 pairs
= $43,750
The fixed cost would remain unchanged.
Answer:
The price of the cereal would fall.
Explanation:
In Economics, there are primarily two (2) factors which affect the availability and the price at which goods and services are sold or provided, these are demand and supply.
The law of demand states that, the higher the demand for goods and services, the higher the price it would be sold all things being equal. On the other hand, law of supply states that the higher the price of goods and services, the lower the supply.
When there is a surplus of a new brand of cereal in the market. What will likely happen to the price of the cereal is that the its price would fall.
Home heating oil is considered inelastic demand instead of elastic demand. Inelastic demand is when people will buy the same amount whether the price of the good drops or rises. People who buy home heating oil want their homes to be kept heated and warm, since they are buying it to serve a purpose like this, whether the price rises or drops they still will need it. Since they will need it regardless of price, they will continue to buy it and therefor it is inelastic.
Based on his age and income, the maximum that Jack is able to contribute to a Roth IRA in 2019 is <u>C. 7,000.</u>
In the year 2019, tax laws were such that:
- $6,000 was the maximum to be contributed to Roth IRA.
- $1,000 could be contributed in excess by those above the age of 50.
As Jack is above the age of 50, he can contribute an extra $1,000 over the limit which puts him at:
= 6,000 + 1,000
= $7,000
In conclusion, Jack can contribute a maximum of $7,000.
Find out more on Roth IRA at brainly.com/question/1300867.
