Answer:
Government Legal minimum price = $1.20 is case of 'Binding Price Floor'
Explanation:
Price Floor is the minimum base benchmark for price of a good or service. It is usually 'binding' i.e below the equilibrium price, is done to protect the producers from under pricing, based on free market forces. Example : Minimum Support Price for farmer's agricultural products.
In this case, the price floor (minimum mandated price) is in labour market for price of labour i.e wages. It is binding also, since it imposes the minimum price (wage) floor at - wage level greater than the wage as per free market demand & supply forces. Also, it is in interest of sellers (labour sellers here) analogous to farmers MSP previous example.
Answer:
Consumption of good y should decrease
The Marginal Utility should also decrease
Explanation:
Marginal utility of a good is the added satisfaction that a consumer gets from consuming additional units of the good.
Given the two goods x and y, and MUx/Px > MUy/Py.
The Marginal Utility Price Ratio indicates the Utility/Satisfaction derived from the last Dollars spent.
To allocate a budget efficiently, the marginal utility for each item should be equal.
A good has a higher marginal utility-price ratio is the good that the consumer should consume more of.
If the Marginal Utility-Price ratio of good x is greater than that of good y, your consumption of good y should decrease and therefore, the MUy will also decrease.
Answer:
The correct answer is (C) $401,302
Explanation:
To get how much the contest winner actually won, we have to calculate the amount receive at the end of each year discounted at this moment. Then, we added all the payments.
For example, the first payment in $200,000 at this moment, so we add $200,000.
At the end of the first year we receive $30,000, and the rate of discount is 8%
The formula of discount is P=A/ (1+r)ⁿ
A=Final amount
P= Principal
r= interest rate
n= time
Year 1 = A/ (1+r)ⁿ
=$30,000/1,08¹= 27777,77
Year 2 =$30,000/1,08²= 25720,16
Year 3=23814,96
Year 4=22050,89
Year 5=20417,49
Year 6=18905,08
Year 7=17504,71
Year 8=16208,06
Year 9=15007,46
Year 10=13895,80
Total 401302,44
Answer:
research four other examples of inferior goods.
There are many examples of inferior goods. Inferior goods are al those goods whose demand rises in times of economic recession. Some examples are:
Cheap food substitutes like supermarket coffee, instantaneous ramen, or canned vegetables.
Cheap clothes.
Flights in low-cost airlines.
Consider the impact of economic recessions and expansions on normal goods.
Economic recessions impact normal goods negatively because people have less income to spend, and they opt to substitute the normal goods for inferior goods.
discuss how revenues of inferior goods producers are expected to be affected by economic recessions and expansions.
In economic recessions, revenues for producers of inferior goods are expected to rise because demand for inferior goods grows. However, because inferior goods are precisely cheaper, this does not necessarily mean that every inferior good producer will make a lot of money.
In economic expansions, revenues for producers of inferior goods will fall, because people, with more income, will flock to normal goods or even luxury goods.
Test marketing is a marketing method that aims to explore consumer response to a product or marketing campaign by making it available on a limited basis before a wider release. Consumers exposed to the product or campaign may or may not be aware that they are part of a test group.
