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2 years ago

What are examples of the substitution effect and/or real-income effect?

Business

1 answer:

Arlecino [84]2 years ago

8 0

The options available are:

A. After subscription prices in the cable TV market fall, customers also purchase higher-speed Internet service.

B. Julie usually buys generic cereal because it is cheaper. One day she notices one of the brand-name products falls in price, so she decides to buy it.

C. Movie ticket prices plummet to $1, so you cancel your Netflix subscription in favor of attending movies at the theater. In addition, the cheap tickets leave you with extra money for concessions.

D. Kyle notices the cost of premium peanut butter has fallen. He considers this and then purchases less bread.

Answer:

The answers are A, B, and C

Explanation:

The options available are:

Option A. "After subscription prices in the cable TV market fall, customers also purchase higher-speed Internet service" is a perfect example of the real income effect.

Option B. "Julie usually buys generic cereal because it is cheaper. One day she notices one of the brand-name products falls in price, so she decides to buy it," is an example of the substitution effect.

While Option C. "Movie ticket prices plummet to $1, so you cancel your Netflix subscription in favor of attending movies at the theater. In addition, the cheap tickets leave you with extra money for concessions, " is an example of both the substitution and real-income effects

However, option D example "Kyle notices the cost of premium peanut butter has fallen. He considers this and then purchases less bread, " does not fit any of the substitution and real-income effects.

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The Balance sheet of Mister Ribs Restaurant reports current assets of $30,000 and current liabilities of $15,000.a. Calculate th

Pani-rosa [81]

Answer:

Current Ratio = 2; Yes

Explanation:

First, to solve for current ratio, simply divide the current assets by the current liabilities.

So the current ratio would be $30,000 / $15,000 resulting to 2

Now, a current ratio greater than one means that Mister Ribs will be able to pay its current liabilities as they come due in the next year.

However, because the current ratio at any one time is just a snapshot, it is usually not a complete representation of a company’s liquidity or solvency.

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2 years ago

Nordstrom, an upscale department store, has a well-known reputation for going the extra mile to serve its customers. This reputa

Komok [63]

Answer:

These are the options for the question:

a. product design excellence.

b. mission statement satisfaction.

c. sustainable price decreases.

d. a sustainable competitive advantage.

e. producer excellence.

And this is the correct answer:

d. a sustainable competitive advantage.

Explanation:

All the other options may be a indirect cause or consequence for Nordstrom's good reputation among the customers, but the direct advantage that this reputation provides is a competitive gain over its market adversaries.

Because the brand is well-regarded, and the clients are satisfied, it is likely that most of the customers are of the loyal type who, when making a purchase, will turn to Nordstrom before considering the competition.

This puts Nordstrom ahead of the competition, and as long as the service quality continues stable or improves even more over time, this advantage will prove sustaniable, and more importantly, profitable.

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2 years ago

On december 31, 2015, cool wear inc. had balances in accounts receivable and allowance for uncollectible accounts of $41,000 and

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$6,000.00 - ($2,050.00 - $750.00) =

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2 years ago

Management of Carla Vista, Inc., is planning to raise $1,215,000 in new equity through a private placement. If the sale price is

Alexeev081 [22]

Answer:

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Explanation:

A private placement involves the issue of new shares to a few number of individual and institutional investors. Unlike initial public offering, here the shares are not offered to the general public.

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2 years ago

A parent sold land costing $400,000 to its subsidiary for $450,000 in 2017. The subsidiary still holds the land at the end of 20

nadezda [96]

Answer:

correct option is a. Land

Explanation:

given data

land costing = $400,000

subsidiary 2017 = $450,000

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solution

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2 years ago