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tatyana61 [14]
3 years ago
5

Suppose the price of the product that labor is producing increases and simultaneously the price of capital, which is substitutab

le for labor, decreases. Assuming that the substitution effect is greater than the output effect, the demand for labor: Group of answer choices will increase. may either increase or decrease. will not change. will decrease.
Business
1 answer:
soldier1979 [14.2K]3 years ago
6 0

Answer: may either increase or decrease.

Explanation:

The substitution effect refers to the reduction in the sales for a product which is as a result of the consumers switching to a cheaper alternative whenw there is an increase in the price of the good.

Based on the question, if the substitution effect is greater than the output effect, then the demand for labor may either increase or decrease.

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Identify the career that matches each description.
mariarad [96]

Answer:

You didn’t provide a list so I came up with possible answers.

Choreographer

Writer

Actor/Actress

Director

8 0
2 years ago
Read 2 more answers
A company borrowed $40,000 cash from the bank and signed a 6-year note at 7% annual interest. The present value of an annuity fa
Nat2105 [25]

Answer: $8,391.90

Explanation:

So the company borrowed $40,000 from a bank.

They are to pay 7% interest on the note per year for 6 years.

We are to find the annual payments.

7% represents a constant payment schedule per year so we can use an Annuity formula.

Seeing as the Annuity factor has been calculated for us already we don't need to formula though.

The present value of an annuity factor for 6 years at 7% is 4.7665.

Calculating the present value of the annual payment can be done as follows,

= Amount / PVIFA (Present Value Interest Factor for an Annuity)

= 40,000/4.7665

= 8391.90181475

= $8,391.90

The annual payments equal $8,391.90.

5 0
3 years ago
One of your customer accounts is a trust account. The trustee of the trust is inexperienced in investing.
Alinara [238K]

Answer:

A) The duty to diversify the trust portfolio to reduce risk

Explanation:

The Uniform Prudent Investor Act (UPIA) requires trustees to make investments following the Prudent Person Rule. This means that trustees should invest the trust funds as if the trustee was a prudent person investing his/her own assets.

The best way to comply with the prudent person rule is to invest in a diversified portfolio that reduces risk.

7 0
3 years ago
We would expect: a. the demand for Coca-Cola to be less price elastic than the demand for soft drinks in general. b. the demand
givi [52]

Answer: Option B

             

Explanation: In simple words, price elasticity refers to the degree of change that a commodity experiences due to change in its price.

   In case of coca- cola, the price elasticity will be high as it has a close substitute available in the market named Pepsi. Therefore, if coca-coal increases its prices,its consumers would shift their demand to Pepsi.

  Thus,from the above we can conclude that the correct option is B.

7 0
3 years ago
By tying the salaries of top corporate managers to the price of the corporation's stock, corporations hope to avoid:
Serjik [45]

Answer:

the principal-agent problem

Explanation:

In the case when there is a tied of the top corporate managers salary with the price of the corporation stock so here the corporation should avoid the principal agent problem as it deals with the conflict with respect to the priorities that lies between the person and the representative.

So the above should be the answer

4 0
2 years ago
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