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kupik [55]
3 years ago
10

Assume that the price of the sub sandwiches is $4 and the price of tacos is $2. When Harry's income is $14 he buys two Italian s

ub sandwiches and three tacos. The last column lists the values of the marginal utility per dollar for tacos when the price of tacos decreases to $1. Complete this statement: As a result of the change in price, the marginal utility of each taco Harry consumes increases and:__________
a. the substitution effect of the price change will cause Harry to buy more tacos if they are a normal good, and fewer tacos if they are an inferior good.
b. the substitution effect will cause Harry to buy another sub because his purchasing power has increased.
c. the substitution effect of the price change will cause Harry to buy more tacos and fewer subs.
d. the substitution effect will cause Harry to buy fewer tacos.
Business
1 answer:
djyliett [7]3 years ago
4 0

Answer:

c. the substitution effect of the price change will cause Harry to buy more tacos and fewer subs.

Explanation:

Since the price of tacos decreased, subs became relatively more expensive. The substitution effect occurs when a consumer (Harry in this case) changes his consumption habits because the price of the goods changes. In this case, tacos become cheaper, and therefore, Harry will obtain more utils per dollar.

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Answer:

False.

Explanation:

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So checking the product at the last stage is counter-productive.

5 0
3 years ago
Nielsen Auto Parts had beginning net fixed assets of $218,470 and ending net fixed assets of $209,411. During the year, assets w
balu736 [363]

Answer:

Capital Expenditure during the year 40,706

Explanation:

opening assets                        =                  218470

less: Depriciation for the year =                  (42822)

less: Disposal of assets           =                   (6943)

less: Closin Assets                   =                   (209411)

Balancing figure additions       =                   40706

8 0
3 years ago
The following U.S. Treasury bond is listed in the The Wall Street Journal: Rate Mo/Yr Bid Asked 9.50 Oct 38 135:30 136:04 This $
STatiana [176]

Answer:

6.35%

Explanation:

If you purchase this bond you will need to pay $1,000 x 136.04% = $1,360.40

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the bond matures in 18 years or 36 semiannual periods

yield to maturity = {coupon + [(face value - market value)/n]} / [(face value + market value)/2]

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YTM = 37.49 / 1,180.2 = 0.031766 x 2 (annual yield) = 0.06353 = 6.35%

8 0
3 years ago
What best explains the time value of money? the concept is another way to explain how inflation works. it just means that it's b
Mamont248 [21]
Time value of money <span>it's best to have money today, so it can be put to work sooner to make even more money. When you have money now, you can invest and start building </span>interest on it. The quicker you have money, the quicker you start to grow your money and the sooner it can double, triple etc. 
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3 years ago
Which type of research is not for commercial potential
Reptile [31]

Explanation:

Basic research

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8 0
3 years ago
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