The total effect of a price change on the amount of a good that a consumer demands can be broken down into two parts: the income effect and the substitution effect. Consider an increase in the price of the good and assume that the good in question is not a perfect substitute or a perfect complement relative to another good. 1st attempt See Hint If the good is normal, then (1) the substitution effect is the demand curve is , (2) the income effect is C , and (3) the slope of If, however, the good is inferior (but not a Giffen good), then (4) the substitution effect is , ,and (6) the slope of the demand curve is D ,(5) the income effect is Finally, if the good is a Giffen good then (7) the substitution effect is (9) the slope of the demand curve is ,(8) the income effect is , and (9) the slope of the demand curve is .

If you miss two payments on a credit card what is generally the penalty

Cynthia is a hospitality worker in the lodging industry who prefers to cater to small groups of people. she might want to open a

Cardinal company is considering a project that would require a $2,725,000 investment in equipment with a useful life of five years. at the end of five years, the project would terminate and the equipment would be sold for its salvage value of $400,000. the company’s discount rate is 14%. the project would provide net operating income each year as follows: sales $2,867,000 variable expenses 1,125,000 contribution margin 1,742,000 fixed expenses: advertising, salaries, and other fixed out-of-pocket costs $706,000 depreciation 465,000 total fixed expenses 1,171,000 net operating income $571,000 1. which item(s) in the income statement shown above will not affect cash flows? (you may select more than one answer. single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. any boxes left with a question mark will be automatically graded as incorrect.) (a)sales (b)variable expenses (c) advertising, salaries, and other fixed out-of-pocket costs expenses (d) depreciation expense 2. what are the project’s annual net cash inflows? 3.what is the present value of the project’s annual net cash inflows? (use the appropriate table to determine the discount factor(s) and final answer to the nearest dollar amount.) 4.what is the present value of the equipment’s salvage value at the end of five years? (use the appropriate table to determine the discount factor(s) and final answer to the nearest dollar amount.) 5.what is the project’s net present value? (use the appropriate table to determine the discount factor(s) and final answer to the nearest dollar amount.)