« previous next »

Author Question: Explain the income effect and the substitution effects of a price change for a normal good. What ... (Read 101 times)

plus1

  • Hero Member
  • *****
  • Posts: 676
on: Jun 29, 2018
Explain the income effect and the substitution effects of a price change for a normal good.
 
  What will be an ideal response?

Question 2

The way in which a corporation is structured and the impact a corporation's structure has on the firm's behavior is referred to as
 
  A) structural behavior. B) corporate governance.
  C) structure composition theory. D) corporate taxation.
InMicro ¦ Hubbard, O'Brien ¦ 1st Edition
Buy Test-Bank


spencer.martell

  • Sr. Member
  • ****
  • Posts: 342
Reply #1 on: Jun 29, 2018
Answer to Question 1

For normal goods, the income and substitution effects work in the same direction. Higher prices lead to a lower quantity demanded, and lower prices lead to a higher quantity demanded.

Answer to Question 2

B


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Nearly all drugs pass into human breast milk. How often a drug is taken influences the amount of drug that will pass into the milk. Medications taken 30 to 60 minutes before breastfeeding are likely to be at peak blood levels when the baby is nursing.

Did you know?

Fatal fungal infections may be able to resist newer antifungal drugs. Globally, fungal infections are often fatal due to the lack of access to multiple antifungals, which may be required to be utilized in combination. Single antifungals may not be enough to stop a fungal infection from causing the death of a patient.

Did you know?

About 3.2 billion people, nearly half the world population, are at risk for malaria. In 2015, there are about 214 million malaria cases and an estimated 438,000 malaria deaths.

Did you know?

Pubic lice (crabs) are usually spread through sexual contact. You cannot catch them by using a public toilet.

Did you know?

Your skin wrinkles if you stay in the bathtub a long time because the outermost layer of skin (which consists of dead keratin) swells when it absorbs water. It is tightly attached to the skin below it, so it compensates for the increased area by wrinkling. This happens to the hands and feet because they have the thickest layer of dead keratin cells.

Stereoisomers have different effects in humans Stereoisomers have different effects in humans
Effect of the activation energy barrier. Effect of the activation energy barrier.
Global Stratification: Income of the World's Nations Global Stratification: Income of the World's Nations
Pressure drop after 10 minutes on a normal port fuel-injection system. Pressure drop after 10 minutes on a normal port fuel-injection system.
The diminishing effects on body weight of a low-calorie diet and a high-calorie diet. The diminishing effects on body weight of a low-calorie diet and a high-calorie diet.
How an Increase in Income Inequality Affects the Desired Tax Rate How an Increase in Income Inequality Affects the Desired Tax Rate
Video: Otitis Media

For a complete list of videos, visit our video library