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enyata [817]
3 years ago
12

As price falls along a downward sloping ordinary demand curve (in the x1, p1 plane), consumer utility will Group of answer choic

es rise. rise if the income effect is LESS than the substitution effect. fall. fall if the income effect is GREATER than the substitution effect. rise if the income effect is GREATER than the substitution effect. rise if the income effect is LESS than the substitution effect.
Business
1 answer:
ser-zykov [4K]3 years ago
7 0

Answer:

c. rise if the income effect is GREATER than the substitution effect.

Explanation:

The substitution effect refers to how changes in the price of a product or service affects our consumption of them, e.g. if the price of brand X increases too much, then we might decide to buy brand Y.

On the other hand, the income effect refers to how a change in our level changes our consumption habits, e.g. luxury goods tend to be extremely elastic, since earning more income results in much higher levels of consumption.

Since the price of the product is falling, the substitution effect is not likely to occur, instead, consumer utility might increase due to higher purchasing power, i.e. you can purchase more units spending the same amount of money.

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Franchising is a contractual agreement between a firm, the franchisor, and another firm or individual, known as the ______.
xxTIMURxx [149]

Franchising is a contractual agreement between a firm, the franchisor, and another firm or individual, known as the franchisee.

8 0
2 years ago
Your parents have accumulated a $120,000 nest egg. They have been planning to use this money to pay college costs to be incurred
Julli [10]

Answer:

At the end of the 4th year, the original $87,000 less an annual vacation expense of $10,000 would have compounded at an interest rate of 7% to become $69,640

Graduate school costs $24,060. The funds will expire after 2.9 years

Explanation:

Kindly refer to the attached document for clearer breakdown of the workings

5 0
3 years ago
Based on a predicted level of production and sales of 12,000 units, a company anticipates reporting operating income of $26,000
dexar [7]

Answer:

Fixed Cost = $10,000

Variable Costs = $90,000

Explanation:

Variable Cost per unit = $72,000 ÷ 12,000

                                      = $6

Variable Costs at 15,000 units = $6 x 15,000

                                                   = $90,000

Fixed Cost (given) = $10,000

8 0
2 years ago
There is a great deal of behavior that falls into a gray zone that can be difficult to analyze, however outright bribery is clea
nadya68 [22]

C. Unethical and Illegal

Bribery is offering something such as money or power to do something unethical.

8 0
3 years ago
Read 2 more answers
Sunland Company uses the percentage-of-receivables method for recording bad debt expense. The Accounts Receivable balance is $31
Alinara [238K]

Answer: $15,500

Explanation:

First we calculate the estimated Uncollecteble debt,

= 6% of 310,000

= 0.06 (310,000)

= $18,600

We will then subtract the existing $3,100 to find out how much we will send to the Bad Debt Expense account because the amount already in the account needs to be included in the $18,600.

= 18,600 - 3,100

= $15,500

We will therefore Debit the Bad Debt Expense account with $15,500 and Credit the Allowance for Doubtful Accounts with the same amount.

If you need any clarification do react or comment.

5 0
3 years ago
Read 2 more answers
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