The answer in the space provided is second. The diminishing
returns set happens when there is an increase with the input variable and by
this, it will likely cause the output to decrease as the marginal increase and
in the same time, other inputs remains to be in constant.
Answer:
a. What do Maahir's indifference curves for shampoo and conditioner look like?
When two goods are perfect complements, their indifference curve will be L-shaped. When two goods are perfect substitutes, their indifference curve will be a straight line with a -1 slope.
b. Assume that shampoo costs $0.40 per pump and conditioner costs $0.20 per pump. If Maahir's budget for shampoo and conditioner is $12, use the space below to write the equation for his budget constraint.
0.4S + 0.2C = 12
S = C
the optimal bundle = 12 / 0.6 = 20 pumps of shampoo and 20 pumps of conditioner
Explanation:
Answer:
a coupon bond that pays a fixed coupon rate and does not mature
Explanation:
Answer:
A). Decrease the money supply so interest rates rise.
Explanation:
This could be explained simply because change in money supply results in changes in price levels and/or a change in supply of goods and services. An increase in money supply results in a decrease in the value of money because an increase in money supply causes a rise in inflation. As inflation rises, the purchasing power, or the value of money, decreases.
A change in interest rates is one way to make that correspondence happen. A fall in interest rates increases the amount of money people wish to hold, while a rise in interest rates decreases that amount. A change in prices is another way to make the money supply equal the amount demanded.
