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Karolina [17]
2 years ago
7

Susie buys two goods: rounds of golf and massages.Suppose that the price of a round of golf is $20 and the price of a massage is

$30.In a typical week,Susie will play two rounds of golf,getting 20 units of satisfaction from the second round.She normally buys three massages each week,with the third giving her 30 units of satisfaction.If she were to buy a fourth massage in a week,it would give her 20 units of satisfaction.If the price of massages is reduced to $15,which of the following outcomes might we expect to occur?
A) Susie would leave her consumption choices unchanged because of diminishing marginal utility in the consumption of massages.
B) Susie would buy more massages and fewer rounds of golf,as predicted by the income effect.
C) Susie would buy more massages and more rounds of golf,as predicted by the substitution effect.
D) Susie would buy more massages and fewer rounds of golf,as predicted by the substitution effect.
Business
1 answer:
AfilCa [17]2 years ago
6 0

Answer:

D) Susie would buy more massages and fewer rounds of golf,as predicted by the substitution effect.

Explanation:

Let's check the utility that Susie gets from consuming these products.

The second round of golf gives her 20 units of satisfaction at $20 = 20/20 = 1

The third massage gives her 30 units of satisfaction at $30 = 30/30 = 1

But now the price the price for massage has come down to $15. The ratio of their prices would be

20/15 = 1.333

1.3 is greater than 1

So she should substitute golf for massages

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You own a stock portfolio invested 35 percent in Stock Q, 25 percent in Stock R, 15 percent in Stock S, and 25 percent in Stock
Harlamova29_29 [7]

Answer:

1.03

Explanation:

Beta is used to measure systemic risk. The higher beta is, the higher the systemic risk and the higher the compensation demanded for by investors.

Systemic risk are risk that are inherent in the economy. They cannot be diversified away.

The portfolio's beta can be determined by adding together the weighted beta of each stock in the portfolio

weighed beta of a stock = percentage of the stock in the portfolio x beta of the stock

Stock Q = 0.35 x 1.34 = 0.469

Stock R = 0.25 X 0.88 = 0.22

Stock S = 0.15 x 0.57 = 0.0855

Stock T = 0.25 x 1.02 = 0.255

Portfolio beta = 0.469 + 0.22 + 0.0855 + 0.255 = 1.0295 = 1.03

5 0
3 years ago
Which is a reason why it is important to organize information before preparing a business report?
inna [77]

Answer:

the answeris B, hope this helps

6 0
3 years ago
Read 2 more answers
If many firms enter the computer software industry and consequently bid up the price of programmers, then:
Lena [83]

Answer:

the correct option is C) If many firms enter the computer software industry and consequently bid up the price of programmers, then: the long-run industry supply curve will slope downward.

Explanation:

When many firm enter an industry, there is competition and the presence of multiple players will eventually cause the cost of production to decline.

In the short run,  if many firms enter the computer software industry and consequently bid up the price of programmers, then the increase in participation will increase the number of software developed.

In the long run, industry supply curve will slop downwards indicating a price reduction.

4 0
3 years ago
1. If a business has assets of $ 5,600 and liabilities of $900, the owner's equity is *
Eddi Din [679]

Answer:

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Explanation:

Because an asset takes money from your pocket and liability puts money in your pocket.

7 0
3 years ago
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xxTIMURxx [149]

Answer:

Effect on income= $10,290 increase

Explanation:

Giving the following information:

Falcon can handle the special order, and for this order, a variable selling cost of <u>$2 per unit would be eliminated.</u>

<u>Because it is a special order that would not affect current sales, we won't take into consideration the fixed costs.</u>

<u></u>

<u>To calculate the effect on income, we need to use the following formula:</u>

Effect on income= Number of units sold*unitary contribution margin

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Effect on income= $10,290 increase

6 0
2 years ago
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