A parcel of land is 140 feet by 75 feet and the seller is asking $130 per square foot. What is the asking price

Clancy is a bus driver who enjoys donuts and muffins. Suppose that the price of donuts increases. As a result, the purchasing po

FromTheMoon [43]

Answer:

INCOME EFFECT

Explanation:

Income Effect means change in real income/ purchasing power due to change in price, income staying same.

Price Increase reduces real income/ purchasing power, income staying same - because consumer can purchase less from same income.
Price decrease increases real income/ purchasing power, income staying same - because consumer can purchase more from same income.

Eg: Income, price of a consumer = Rs100, Rs10 respectively.

Real Income = Income/price = 100/10 = 10. Price fall to 8 increases purchasing power to 12.5 (100/8). Price rise to 12 decreases purchasing power to 8.3 (100/12).

Income Effect : stating - lower purchasing power at higher prices, reduces consumption of all goods and higher purchasing power at lower prices, increases consumption of all goods.

3 0

3 years ago

At the time of Carol's 10 year high school reunion she was making $30,000 and the CPI was 90. Now that is is time for her to att

Klio2033 [76]

No, Carol's real income fell during that 10-year period.

[(30,000 ÷ 90 × 100) is > (65,000 ÷ 200 × 100)].

<h3><u>How Does the Consumer Price Index (CPI) Work?</u></h3>

The change in prices that American consumers pay each month is tracked by the Consumer Price Index (CPI). The CPI is calculated by the Bureau of Labor Statistics (BLS) as a weighted average of prices for a selection of goods and services that are indicative of overall consumer spending in the United States.

A common indicator of inflation and deflation is the CPI. The CPI report employs a different survey methodology, price sample, and index weights than the producer price index (PPI), which gauges changes in the prices paid by American producers of products and services.

<u>What Purposes Does the CPI Serve?</u>

Policymakers and the financial markets carefully monitor the CPI Index as an indicator of inflation. The cost of living adjustments for federal benefit payments is computed using a linked CPI metric.

<u>How is the CPI determined?</u>

When calculating the CPI, the Bureau of Labor Statistics takes a monthly sample of 94,000 prices and weights each index according to its share of recent consumer spending to determine the total change in prices. In the computation, the substitution impact is also taken into account, which occurs when customers divert their spending away from goods whose prices are rising relative to other goods.

Learn more about CPI with the help of the given link:

brainly.com/question/26682248

#SPJ4

8 0

2 years ago

The CAPM is a multi-period model that takes account of differences in securities' maturities, and it can be used to determine th

stich3 [128]

Answer:

B. False

Explanation:

Capital Asset Pricing Model (CAPM) is an indicator that shows the relationship between the expected return and the risk of investing in a particular security.

This model is used to examine securities and their given prices, haven stated the expected rate of return and cost of capital involved.

CAPM is used by investors to make wise decision before investing their funds in a particular security.

3 0

3 years ago

FabFitFun Coupon Code FabFitFun Coupon Code is the best way to avail discounts on FabFitFun store shopping, there are lots of it

dezoksy [38]

Answer: Please don’t advertise here

5 0

3 years ago

Read 2 more answers

Which sales channel is projected to top $450 billion within the next several years?

pshichka [43]

According to one source from the internet, the cross-border sales is projected to top $450 within the next 5 years. Cross-border trade is the process of buying and selling of products, selling goods and services between business domestically or in the neighborhood countries.

6 0

4 years ago