<span>Represents all the combinations of goods and services that a consumer may purchase given current prices within his or her given income.
the formula is y=Pb B + Pw W
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Hope that helped!
Answer:
a. demand for existing shares of the stock and the price will both fall.
Explanation:
The stock price is formed by the interaction of supply and demand of companies's shares and when a news like this is released is expected that the future cashflows of that company will drop. Being share buyers rational actors, the demand for the company's shares will drop, therefore the price of the company will drop as well.
The law of diminishing returns states that, ceteris paribus, the rate of profit from an investment will continue to diminish as more capital ins invested into that product.
<h3>What is Ceteris Paribus?</h3>
Ceteris Paribus is a Latin phrase often quoted in economics that means "all things being equal". It is used to connote the fact that in the consideration of a law, sometimes it is assumed that all other factors are given or at play.
It is to be noted that the Law of Diminishing Returns is also applicable to Labor, Utility and Marginal Returns.
Learn more about the Law of Diminishing Returns at;
brainly.com/question/19070161
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The concert tickets are represented as an opportunity cost.
