« previous next »

Author Question: A decrease in the price level results in a(n) ________ in household consumption spending and a(n) ... (Read 98 times)

Capo

  • Hero Member
  • *****
  • Posts: 545
on: Jun 29, 2018
A decrease in the price level results in a(n) ________ in household consumption spending and a(n) ________ in investment spending.
 
  A) increase; increase B) decrease; increase C) increase; decrease D) decrease; decrease

Question 2

Explain whether Delta Airlines' sales are likely to fluctuate more or less than the sales of each of the following firms as the economy moves from recession to expansion and back to recession.
 
  Whirlpool Corporation (appliance manufacturer)
   Taco Bell
   The Boeing Company (aircraft manufacturer)
   GameStop (video game sales and rentals)


ynlevi

  • Sr. Member
  • ****
  • Posts: 338
Reply #1 on: Jun 29, 2018
Answer to Question 1

A

Answer to Question 2

Delta's sales are likely to fluctuate during the business cycle less than the sales of Whirlpool and Boeing, but more than the sales of Taco Bell and GameStop. Appliances and aircraft are expensive durable goods that are sensitive to changes in economic conditions. On the other hand, fast food and video games are relatively inexpensive consumer goods that are relatively less sensitive to changes in economic conditions.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Children with strabismus (crossed eyes) can be treated. They are not able to outgrow this condition on their own, but with help, it can be more easily corrected at a younger age. It is important for infants to have eye examinations as early as possible in their development and then another at age 2 years.

Did you know?

Hip fractures are the most serious consequences of osteoporosis. The incidence of hip fractures increases with each decade among patients in their 60s to patients in their 90s for both women and men of all populations. Men and women older than 80 years of age show the highest incidence of hip fractures.

Did you know?

Street names for barbiturates include reds, red devils, yellow jackets, blue heavens, Christmas trees, and rainbows. They are commonly referred to as downers.

Did you know?

Astigmatism is the most common vision problem. It may accompany nearsightedness or farsightedness. It is usually caused by an irregularly shaped cornea, but sometimes it is the result of an irregularly shaped lens. Either type can be corrected by eyeglasses, contact lenses, or refractive surgery.

Did you know?

An identified risk factor for osteoporosis is the intake of excessive amounts of vitamin A. Dietary intake of approximately double the recommended daily amount of vitamin A, by women, has been shown to reduce bone mineral density and increase the chances for hip fractures compared with women who consumed the recommended daily amount (or less) of vitamin A.

(a) Initial mtDNA results suggested modern humans and Neadertals were equally distantly related to D (a) Initial mtDNA results suggested modern humans and Neadertals were equally distantly related to D
Comparison of Household, Apothecary, and Metric Liquid Measurements Comparison of Household, Apothecary, and Metric Liquid Measurements
Globalized Consumption Globalized Consumption
Rapid sea level rise Rapid sea level rise
Rising sea level: Some areas will be affected by a rise of just 40 cm Rising sea level: Some areas will be affected by a rise of just 40 cm
The net price of an article is $79.84. What is the list price if a discount of 23% was allowed? The net price of an article is $79.84. What is the list price if a discount of 23% was allowed?
Video: The pH scale - Strong acids and Weak acids

For a complete list of videos, visit our video library