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2 years ago

The reason the substitution effect works to encourage a consumer to buy less of a product when its price increases is:

Business

1 answer:

ikadub [295]2 years ago

8 0

Answer:

The correct answer is the option C: the product is now relatively more expensive than it was before.

Explanation:

To begin with, the <em>substitution effect</em> is the term that, in economics, refers to the situation where a products or services increase or decrease its value in comparison with other and therefore it causes a substitution from the consumer regarding that change in the price.

Secondly, in the case where a product increases its price the substitution effect will cause that the consumer decides to purchase other products due to the fact that the first product is now relatively more expensive than it was before and therefore a substitution of the good takes place.

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On December 31, 2019, Spearmint, Inc., issued $450,000 of 9 percent, 3-year bonds for cash of $461,795. After recording the rela

Ilya [14]

Answer:

Explanation:

Cash Payment to customers: $450,000 x contract rate of 9% x 1/2 = $20,250

Amortization of the premium: $11,795/6 periods = $1,966

Bond interest Expense: $20,250 - $1966 = $18,284

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2 years ago

Which of the following is an incorrect statement regarding Bonus Depreciation? A. Bonus Depreciation is useful to very large bus

daser333 [38]

Answer:

C. Bonus Depreciation only covers new equipment.

Explanation:

Bonus depreciation is the depreciation provided on additional capital investment. This is depreciation for tax base calculation, where any purchase of eligible asset is depreciated extra that means the purchase price is allowed as standard deduction in first year of it's purchase.

There is no such primary condition that the asset shall be new equipment only.

Therefore, incorrect statement is C

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2 years ago

If the price level of what firms produce is rising across an economy, but the costs of production are constant, then:___________

Lerok [7]

Answer:

D. higher profits will induce expanded production.

Explanation:

If the price of a good increases and the cost remains the same ,profits earned would increase.

For example if price of a pen was initially $5 and rose to $7. The cost of making a pen is $3. Total profit would rise from $2 to $4.

According to the law of supply, the higher the price, the higher the quantity supplied and the lower the price, the lower the. quantity supplied. Therefore, the higher price would attract more producers and production would increase. Existing producers would also increase output.

I hope my answer helps you.

8 0

2 years ago

According to the BRANDZ model of brand strength, brand building involves people progressing through a sequential series of steps

Rasek [7]

Answer:

<u>A) Presence</u>

Explanation:

A brand is simply an identifying mark of a particular product manufactured by particular company.

The BRANDZ MODEL developed by Millward Brown and WPP looked at how brand building connects with customer issues.

By knowing how long a product brand has been in existence people can the question what do I know about it?

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2 years ago

Which of the following reports is an example of an analytical report? a. A report outlining the new company procedure for report

Ksenya-84 [330]

Answer:

Explanation:

An analytical report is a type of a business report that uses qualitative and quantitative company data to analyze as well as evaluate a business strategy or process, while empowering employees to make data-driven decisions based on evidence and analytics. Analytical reports offers both information and analysis and also include recommendations.

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2 years ago

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