Answer:
B. negative, positive
Explanation:
Substitution effect : Price rise of a good makes it relatively expensive, decreases its demand. Price fall of a good makes it relatively cheap, increases its demand.
So: Substitution Effect is always negative as per above explanation.
Income Effect : Price rise of a good decreases real income/ real purchasing power of consumer & reduces demand of all goods. Price fall increases real purchasing power & increases demand of all goods.
Income effect is positive in case of Normal Goods, normal good demand is positively related to income. The effect is negative in case of inferior goods, inferior good demand is negatively related to income.
Hence: Price rise of rice - Substitution effect results in negative change in rice consumption. {∵substitution effect always negative}
Income Effect leads to positive change in rice consumption {∵price rise reduces real income & income effect is negative for inferior goods}
Answer:
False.
Explanation:
If Dmitri's Fire Engines were competitive firm instead of $100,000 were the market price for an engine, decreasing its price from $100,000 to $50,000 would result in a decrease in production quantity, but increase in total revenue. The statement is false.
Is Job analysis one of the options?
Answer:
a) EPS 2.367 dollars
b) price-earning ratio 15
c) book value of a common share 5.33
Explanation:
a) earning per share: income / shares outstanding
2,000,000 / 750,000 = 2.67
b) price / EPS
40 / 2.67 = 15
c) We determinate this using the accounting equation:
Assets = Liab + Equity
Assets 9,000,000
Liabilities<u> 5,000,000</u>
Equity 4,000,000
equity / shares outstanding:
4,000,000 / 750,000 = 5.3333
Answer: The best way to ensure that your company has read and understand the code of ethics is to establish a policy for employees to read it every year and that at the end of the reading, take a knowledge test with a minimum of 90% to pass.
Explanation: The code of ethics establishes parameters that standardize the behavior of people linked to a company. By conducting the assessment every year you ensure that people refresh the code of ethics. You can also offer tutorials that serve to get the message better before the evaluation and if someone fails the evaluation, that person must repeat it until they qualify at this 90%.
