« previous next »

Author Question: Explain the income effect and the substitution effects of a price change for a normal good. What ... (Read 99 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?

Amphetamine poisoning can cause intravascular coagulation, circulatory collapse, rhabdomyolysis, ischemic colitis, acute psychosis, hyperthermia, respiratory distress syndrome, and pericarditis.

Did you know?

Looking at the sun may not only cause headache and distort your vision temporarily, but it can also cause permanent eye damage. Any exposure to sunlight adds to the cumulative effects of ultraviolet (UV) radiation on your eyes. UV exposure has been linked to eye disorders such as macular degeneration, solar retinitis, and corneal dystrophies.

Did you know?

Interferon was scarce and expensive until 1980, when the interferon gene was inserted into bacteria using recombinant DNA technology, allowing for mass cultivation and purification from bacterial cultures.

Did you know?

Illicit drug use costs the United States approximately $181 billion every year.

Did you know?

Warfarin was developed as a consequence of the study of a strange bleeding disorder that suddenly occurred in cattle on the northern prairies of the United States in the early 1900s.

Effects of Low and High Doses of Apomorphine Effects of Low and High Doses of Apomorphine
Normal conduction pathway in the heart. Normal conduction pathway in the heart.
Pharmacologic effects and indications of adrenergic antagonists: (a) blockade of alpha1 receptors; ... Pharmacologic effects and indications of adrenergic antagonists: (a) blockade of alpha1 receptors; ...
Normal tympanic membrane with cone of light and process of malleus Normal tympanic membrane with cone of light and process of malleus
If a graph has the following x-intercepts, which value of x is the instantaneous rate of change ... If a graph has the following x-intercepts, which value of x is the instantaneous rate of change ...
The time at which the mailman delivers the mail to Ace Bike Shop follows a normal distribution ... The time at which the mailman delivers the mail to Ace Bike Shop follows a normal distribution ...
Video: Type of Cell Junctions - Desmosome, Hemidesmosomes and Gap Junctions

For a complete list of videos, visit our video library