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3 years ago

A Giffen good is a good for which price and quantity demanded are positively related. A Giffen good arises when:_______.

Business

1 answer:

IRISSAK [1]3 years ago

7 0

Answer:

Explanation:

A giffen good is a good whose quantity demanded increases with price increase and reduces with price decreases. This leads to an upward sloping demand curve which is not in line with the law of demand

Example of a giffen good is bread.

For a giffen good there would a negative income effect and a positive substitution effect but the income effect would outweigh the substitution effect

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Bakery has bought 250 pounds of muffin dough. They want to make waffles or muffins in half-dozen packs out of it. Half a dozen o

Alina [70]

Answer and Explanation:

The number of packets of waffles is W

and the number of muffins are M

The weight of dough is 250 pound and a pack of muffins requires 1 lb of dough whereas a pack of waffles uses 3/4 lb of dough.

3÷4W+M≤250

Multiplying both sides by 4

3W+4M≤1000

It takes bakers 6 minutes to make a packer of waffles and 3 minutes to make a pack of muffins, the total time available is 20 hours or 1200 minutes.

3M+6M≤1200

Minus the initial equation from the new equation:

(3M+6M≤1200)−(3W+4M≤1000)

2M≤200

Dividing equation by 2

M≤100

For M≤100

3W+4M≤1000

3W≤1000−4M

For the Maximum values of M

the least value of W is obtained

3W≥1000−4×100

3W≥600

Dividing the equation by 3

W≥300

For maximum profit, the number of waffles and muffins is taken as 300 and 100 respectively :

1.5∗300+2∗100

=650

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3 years ago

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steposvetlana [31]

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3 years ago

Read 2 more answers

Suppose the world price of cotton falls substantially.

Crazy boy [7]

Answer:

(A) Decrease

(B) Increase

Explanation:

An decrease in the price of cotton will cause all the cotton producing firms to put Strategies in place that will help them to cut the costs of operations which will include the REDUCTION OF THE MANPOWER OR WORKFORCE.

When the price of raw materials or inputs used in the production processes of a given product reduces, IT WILL ENABLE THE COMPANY TO WANT TO INCREASE ITS PRODUCTION CAPACITY WHICH WILL ALSO INVOLVED AN INCREASE IN MANPOWER OR WORKFORCE.

Frictional Unemployment is a type of Unemployment caused by seasonal changes such as reduced demand, reduced price of products etc or people changing jobs due to certain factors.

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3 years ago

Vista Company installed a standard cost system on January 1. Selected transactions for the month of January are as follows.

nika2105 [10]

Answer:

1. Dr Raw Materials Inventory $69,920

Dr Materials Price Variance $1,840

Cr Accounts Payable $71,760

2. Dr Work in Process Inventory $68,780

Dr Materials Quantity Variance $1,140

Cr Raw Materials Inventory $69,920

3. Dr Factory Labor $73,600

Cr Labor Price Variance $8,000

Cr Factory Wages Payable $65,600

4. Dr Work in Process Inventory $74,474

Cr Labor Quantity Variance $874

Cr Factory Labor $73,600

5. Dr Work in Process Inventory $143,254

Cr Manufacturing Overhead $143,254

Explanation:

Preparation of the anuary transactions

1. Dr Raw Materials Inventory $69,920

(18,400*$3.80)

Dr Materials Price Variance $1,840 [18,400 x ($3.90 - $3.80)]

Cr Accounts Payable $71,760

($69,920+$1,840)

2. Dr Work in Process Inventory $68,780

(18,100*$3.80)

Dr Materials Quantity Variance $1,140 [$3.80 x (18,400 - 18,100)]

Cr Raw Materials Inventory $69,920

(18,400*$3.80)

3. Dr Factory Labor $73,600

($16,000*$4.60)

Cr Labor Price Variance $8,000

[16,000 x ($4.10 - $4.60)]

Cr Factory Wages Payable $65,600

(16,000*$4.10)

4. Dr Work in Process Inventory $74,474

(16,190*$4.60)

Cr Labor Quantity Variance $874 [$4.60 x (16,000 - 16,190)]

Cr Factory Labor $73,600

($8,000+$65,600)

5. Dr Work in Process Inventory $143,254

($68,780+$74,474)

Cr Manufacturing Overhead $143,254

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3 years ago

Which of the following is a Nobel Prize winning economist who has argued that theories should be tested based on the validity of

Sunny_sXe [5.5K]

Answer:

(A). Milton Friedman

Explanation:

Milton Friedman, an American economist received the Nobel prize in 1976.

In his 1953 essay, "The Methodology of Positive Economics", Friedman argued that an <u>economic theory should be judged on how accurate its predictions are, and not on the soundness of its assumptions.</u>

4 0

3 years ago