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PtichkaEL [24]
3 years ago
10

With an aim of a diagram, distinguish between the income effect and substitution effect of change in price of a normal good​

Business
1 answer:
Nana76 [90]3 years ago
4 0

Hello. You did not present a diagram to which the question refers. However, I will try to help you in the best possible way.

The income effect is the term related to the increase or decrease in the consumer's purchasing power in relation to the fluctuation in the price of consumer products and the value of the national currency. On the other hand, the substitution effect refers to the impact between the variation of the consumers' income value and the product's prices.

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I believe that the best action is to repurchase stocks.

Paying a large and unexpected dividend will yield an immediate return, but it will also decrease the stock's price. On the other hand, repurchasing stocks will result in lower outstanding stocks and the same cash flows. This will result in higher stock prices. Supposedly, upper management has the duty to increase the wealth of stockholders and that is achieved through higher stock prices.

Explanation:

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A

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Assume that a company sells customized sweatshirts for $15 per unit. It pays a sales commission of $5 per unit sold. The company
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Answer:

The  The number of sweatshirts the company would need to sell to earn a target profit of $1,710 is closest to <u>570</u> sweatshirts.

Explanation:

This can be calculated as follows:

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Number of sweatshirts to sell to earn a target profit = Target profit / Profit per unit = $1,710 / 3 = 570

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2 years ago
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2 years ago
Adjustments for unearned revenues: Select one: a. decrease liabilities and increase revenues. b. increase liabilities and increa
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(D) decrease revenues and decrease assets

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When a revenue was recorded in the books, the like journal entry would have been.

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8 0
3 years ago
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