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saveliy_v [14]
3 years ago
7

Barbara purchases only two goods, salads, and notepads. Both are normal goods for Barbara. Suppose the price of salad decreases.

Barbara’s consumption of notepads will most likely:__________.a. be unchanged as the two goods are not substitutes.b. increase due to the substitution effect.c. decrease since she will spend more of her budget on saladsd. increase due to the income effect.
Business
1 answer:
damaskus [11]3 years ago
8 0

Like Haley up here did^^^^^^^^

Answer:

B

Explanation:

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1. The giving up of one benefit or advantage in order to gain another regarded as more favorable.
Serjik [45]

Answer:

1. Trade off

2. Opportunity cost

3. Cost-benefit analysis

4. Diminishing marginal utility

Explanation:

1. Giving up one benefit or advantage to gain another regarded as more favorable is called trade-off. Every economic decision involves some trade-off.

2. Opportunity cost is the second-best alternative or value of the alternative, that must be given up when making a choice. Because of scarce resources with alternative uses allocation of resources involves some opportunity cost.

3. Cost-benefit analysis can be defined as the process of examining the benefits and costs of each available alternative in arriving at a decision. Resources are allocated efficiently if the cost incurred and benefit earned is equal.

4. As we go on increasing the quantity consumed of a product, the marginal utility or satisfaction earned from its consumption goes on decreasing. This is called diminishing marginal utility.

7 0
3 years ago
When a third party knows that an agent is acting on behalf of a principal, but does not know the identity of the principal, the
Amanda [17]
Partially disclosed or unidentified
5 0
3 years ago
Kylie was born into a family that owns numerous corporations and more than one multimillion dollar home. She never worried about
monitta
She is very dependent , and Spoiled & it will be hard for her whenever she starts being indepwndent
5 0
3 years ago
Which financial leverage ratio is used with two other ratios to mathematically produce the return on equity ratio?
ipn [44]

Answer: c. Total Assets/ Equity

Explanation:

To measure the Return on Equity with 3 ratios, the <em>DuPont Analysis</em> can be used. This is a technique of deconstructing the Return on Equity ratio into various constituent ratios so that their effect on Return on Equity is better know.

The basic DuPont Analysis is;

Return on Equity = \frac{Net Income}{Revenue} * \frac{Sales}{Total Assets}  * \frac{Total Assets}{Equity}

Total Assets/ Equity or the Assets to Shareholder Equity ratio is the answer.

5 0
3 years ago
Bill took out a $100,000 non-recourse loan and bought an apartment building. The building is not security for the loan. Bill spe
natta225 [31]

Answer:

Bill has $25,000 at-risk and he can also deduct $25,000 from his income due to the losses associated with his rental activity.

Explanation:

At risk amounts are the money that investors can lose due to a bad business decision or performance. The maximum amount that an investor can deduct is equal to the at-risk amount that he/she has invested.

Bill's at-risk $25,000 are equal to the money he spent on house repairs.

3 0
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