answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
OLEGan [10]
2 years ago
14

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.

You might be interested in
Johnson is appraising two parcels of property. One is leased to the government for use as a post office; the other is leased to
Arada [10]

Answer:

Lower.

Explanation:

The capitalization rate is mainly used in real estate and is a measure of the rate of return on a property, based on the net operating income it is expected to generate.

Johnson in appraising two parcels of property, leased one to the government for use as a post office while the other parcel of property, is leased to a private owner for use as a hardware store. Having the knowledge that the parcels have recently started long-term leases. The capitalization rate of the post office property used by the government as compared to the capitalization rate of the hardware store property used by the private owner will be lower.

The capitalization rate of the post office property would be lower because, real-estate investors will not expect much returns on the investment as it's a less risky investment. The post office is less likely than a hardware store to run out of business or go bankrupt by virtue of being a governmental agency or public company.

Hence, the hardware store will need a higher capitalization rate in comparison with post office property.

4 0
2 years ago
Fred is a new employee who has been assigned to your team. This is the first time Fred has worked in your country. Aware that he
andreev551 [17]

Answer:

1 Ask Fred to run team meetings in order to get to know people more quickly.

Explanation:

This alternative is the most effective to help Fred adjusting to the team and build cultural competence. There are 2 reasons: 1. The other options did not allow Fred of socializing with team members and take a lesson of them. 2. Cultural competence goes beyond knowing business rules and how to make decisions.

7 0
2 years ago
Braun Company has one service department and two operating (production) departments. Maintenance Department costs are allocated
11111nata11111 [884]

Answer:

$154,900

Explanation:

The computation of the total cost of operating the assembly department as follows:

= Direct expenses of assembly department + allocated amount

= $123,400 + $52,500 × 69,000 ÷ (69,000 + 46,000)

= $123,400 + $52,500 × 69,000 ÷ 115,000

= $123,400 + $31,500

= $154,900

8 0
2 years ago
Anne Mulcahy, Xerox CEO, has been successful in turning the company around, in part because of the skills she learned when she s
Softa [21]

Answer:

The correct answer is D) build a relationship

Explanation:

Although A) is also correct, but it is correct for all types of selling, not only personal selling (the goal of sales is simply to increase profit).

In personal selling, the seller and the potential buyer interact face-to-face or voice-to-voice. It can be done through a call center by making a cold call to try to convine a client, while using a script or not, or it can be done in personal interaction in various enviroments: a retailer store, approaching the customers door-to-door, or even in the streets.

The idea is to build confidence, trust, to appear likeable. It has been found by many studies that people take decisions mostly based on emotional reasoning. If the seller is able to elicit positive emotions from the customer, he will increase the probablity of closing the sale.

7 0
2 years ago
Lowlife Company defaulted on a $250,000 loan that was due on December 31, 2018. The bank has agreed to allow Lowlife to repay th
IceJOKER [234]

Answer:

Explanation:

1. Present value = Annuity amount * PVA (n=4;i=10%)

250,000 = Annuity amount*3.16987

Annuity amount = $78,868

2. Present value = Annuity amount * PVA (n=5;i=8%)

250,000 = Annuity amount* 3.99271

Annuity amount = $62,614

3. i = 10%

Annual payments = $51,351

250,000 = 51,351 *X

X = 4.86845

When looking at the table of present value of an ordinary annuity, PVA of 4.86845 and i=10%, ⇒ n = 7 payments

4.

Payments = 104,087

n = 3

250,000 = 104,087*X

X = 2.40184

When looking at the table of present value of an ordinary annuity, PVA of 2.40184 and n=3, ⇒ i = 12%

3 0
2 years ago
Other questions:
  • Suzanna decided not to pay federal income tax, saying that paying federal income tax is optional. Describe two possible conseque
    6·2 answers
  • Pam's Pet Palace is considering an investment in dog grooming equipment that would increase cash receipts by $12,000 annually. T
    7·1 answer
  • to recieve a 14% return on an investment of 500,000 what would be the required net operating income of the purchased property?
    5·1 answer
  • Ashley, a purchasing manager, tells Franklin, the human resource manager, that she has selected a candidate to be her purchasing
    8·1 answer
  • Suppose that World Corp. signs a contract to build a lumber processing plant in Siberia. If World Corp. signs a second contract
    11·1 answer
  • Many manufacturers have quality control programs that include inspection of incoming materials for defects. Suppose a computer m
    15·1 answer
  • An organization contracts with software developers to produce apps for clients. The organization is paid in part by how well the
    14·1 answer
  • A stock has an expected return of 11.85 percent, its beta is 1.24, and the expected return on the market is 10.2 percent. What m
    7·1 answer
  • 1. Stock Values. Integrated Potato Chips paid a $2 per share dividend yesterday. You expect the dividend to grow steadily at a r
    8·1 answer
  • Which statement is true regarding the Preferred Vendor field in Product and Services items?A. You can add more than one preferre
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!