The economic term for this is "opportunity cost".
Opportunity cost is the cost of the options that one is not choosing. This means that if one has to choose between A and B, opportunity cost is the cost of "giving up B" when one chooses A.
The income effect is the change in the demand of the goods and services as an result of the change of the The increased voluntary income of the consumer. Hense, the best option that describes the income effect is;The increased income earned by suppliers because of high prices. :)
Answer:
The reconstruction era started directly after the civil war and lasted until 1877. President Andrew Johnson was president. This was an effort to reunify a divided nation. Amendments such as the 14th were ratified in this time. Although the Civil War was just won, it is important to remember that slaves were not completely free. There was a process to this and several loopholes were found. Slaves were not yet equal.
Explanation:
Hope this helps :) If you have any additional questions regarding the Reconstruction Era you can ask in the comments and I’ll answer asap
Answer:
The correct answer is C) Consumption function shifts up
Explanation:
The consumption function is C = a + b x Yd
where:
- C = Total consumption
- a = autonomous consumption
- b x Yd = induced consumption
Autonomous consumption is consumption that does not depend on income. Even if your income is zero, you still have to engage in this type of consumption to survive (for example, food).
When you graph a consumption function, the Y axis represents total consumption and the X axis represents income. Autonomous consumption is located somewhere along the Y axis, with the X being zero. If Autonomous consumption increases, the point in the Y axis will move up, but the point in the x axis will still be zero, hence, the function will shift up.
