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.
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.
The answer in the space provided is sales presentation. In
this stage of selling process, it is where a sales representative tries to
determine which the buyers wants and he or she would likely present products
that would make the buyers think or to have a thought of buying the product
that has been offered down to him or her.
Answer:
The gross income Donna needs to recognize from stock dividend is ZERO.
Donna’s basis for her 840 shares of stock is $47.62.
Explanation:
Assuming that Donna does not have any option to recieve dividend in form of cash, the stock devidend will be non-taxable.
Therefore, The gross income Donna needs to recognize from stock dividend is ZERO.
Adjusted basis per share after dividend
= Adjusted basis of 800 shares/number of shares
= $40,000/840
= $47.62
Therefore, Donna’s basis for her 840 shares of stock is $47.62.
Answer:
A
Explanation:
Brenda must follow all of Jim's instructions, she is under obligation to follow Jim's directive as the title of ownership of the said property is wit him.
