Ask Question
BusinessBusiness
26 September, 21:39

When a reduction in the price of a good allows a consumer to purchase more of all goods, this effect is called the a. elasticity effect. b. income effect. C. substitution effect. d. monetary effect.

+4
Answers (2)
  1. 27 September, 00:55
    0
    The correct answer is b. income effect.

    Explanation:

    The income effect describes how the change in the price of a good can change the quantity that consumers will demand of that good and related goods, based on how the price change affects their real income.
  2. 27 September, 01:33
    0
    The correct option is B, income effect.

    Explanation:

    Income effect is when consumers are able to buy more of a product when the price of such product reduces, in other words, the consumer's real income increases.

    Consumer real income is the basket of goods and services the disposable income of the consumer is capable of buying at prevailing market rates.

    It is very important to note that disposable income is net wages and salaries received by the household after tax and other deductions such pension contribution have all been deducted from their gross wages and salaries.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “When a reduction in the price of a good allows a consumer to purchase more of all goods, this effect is called the a. elasticity effect. b. ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Metro, Inc. sells backpacks. The Company's accountant is preparing the purchases budget for the first quarter operations. Metro maintains ending inventory at 20% of the following month's expected cost of goods sold.
Answers (1)
An internal persuasive message should explain why your idea or policy is the best option. this is known as the
Answers (1)
Place the following obligations as a corporation (as identified by Archie B. Carroll) in order, starting with the highest-level responsibility at the top of the list and placing the most fundamental obligation at the bottom of the list. 1.
Answers (1)
Question 4: List three characteristics of a leader. Then list three characteristics of a manager.
Answers (1)
Suppose the herfindahl indexes for industries a, b, and c are 7,200, 5,000, and 1,500, respectively. these data imply multiple choice that market power is greatest in industry c. that market power is greatest in industry b.
Answers (1)
New Questions in Business
It costs Fortune Company $12 of variable and $5 of fixed costs to produce one bathroom scale which normally sells for $35. A foreign wholesaler offers to purchase 1,000 scales at $15 each.
Answers (2)
An American manufacturer has been asked to provide construction equipment to a foreign government. The contract is for a sizable amount, so the manufacturer wants to protect itself should the foreign government refuse to pay for the equipment once
Answers (1)
Use the following information to answer the next three questions. Periods Future Value of $1 at 12 Percent Future Value of Ordinary Annuity of $1 at 12 Percent Present Value of $1 at 12 Percent Present Value of Ordinary of $1 at 12 Percent 1 1.120 1.
Answers (1)
The primary aim of an informative speech is to Multiple Choice modify the attitudes of the audience. explain why listeners should change their behavior. offer reasons for supporting a new policy. convey knowledge or information.
Answers (1)
The more management relies on formal, collective, sequential, fixed, and serial socialization programs and emphasize divestiture, the more likely newcomers' differences will be stripped away and replaced by standardized predictable behaviors. 1.
Answers (1)
Home » Business » When a reduction in the price of a good allows a consumer to purchase more of all goods, this effect is called the a. elasticity effect. b. income effect. C. substitution effect. d. monetary effect.
Sign Up Forgot Password?