--%>
Assignment Help - homework help

Influence of discount on Income Effect

Jay saved $200 to purchase a Zowie digital camera following her friend showed Jay the Zowie she purchased for $200 at a close by camera store. Fortunately the camera was on sale for $150 all through a one-hour ‘Manager’s Special’ sale when Jay ultimately went to the store. Jay utilized the unexpected $50 discount to purchase a case and a memory card. The purchase of case and memory card is an illustration of the: (i) Substitution effect. (ii) Paradox of value. (iii) Law of diminishing marginal utility. (iv) Income effect. (v) Utilitarianism principle.

What is the right answer?

   Related Questions in Microeconomics

  • Q : Meaning of surplus in current price I

    I have a problem in economics on Meaning of surplus in current price. Please help me in the following question. The surplus of potting soil signifies that the current price: (1) Makes an surplus demand. (2) Is above the equilibrium. (3) Surpasses the

    		•
  • Q : Produces profit maximizing by marginal

    All profit maximizing firms makes where marginal revenue: (w) equals marginal cost. (x) equals average variable cost. (y) includes average revenue. (z) is rising. Can anybody suggest me the proper

    		•
  • Q : College loan-Rational Ignorance Assume

    Assume that a student takes out a college loan which needs 12% annual interest, however later learns that his aunt makes loans to the family members at 5% interest. The student has suffered from the problem termed as: (1) Rational ignorance. (2) Blind indifference. (3

    		•
  • Q : Question based on balance sheets Help

    Help me to solve this problem. Refer to the given balance sheets. If the reserve ratio is 25%, the maximum money-creating potential of the commercial banking system is: A) $36. B) $17. C) $48. D) $24.

    Q : Present Value of Future Income The

    The present value of future income is: (w) higher, the higher the interest rate. (x) lower, the higher the interest rate. (y) unaffected by the interest rate. (z) purely objective, and not subjective at all. Hello guys I want your advice. Please recommend some views for above Economics pr

    		•
  • Q : Market clearing price problem The

    The markets in which the current market price surpasses the market clearing price experience: (1) Surpluses. (2) Declining scarcity. (3) Unexpected inventory shrinkage. (4) Shortages. (5) Raised market demands. Find out the right a

    		•
  • Q : Money as a yardstick of standard measure

    Normal 0

  • Q : Drive rivals out of business A firm may

    A firm may temporarily lower prices as well as earn negative profits in trying to: (w) drive rivals out of business. (x) find rivals to lower prices. (y) maximize current profit. (z) A rational firm would not do this.

    Q : Earn normal accounting profit in the

    When a purely competitive industry is into long run equilibrium, in that case a typical firm can: (w) earn normal accounting profit although only zero economic profit. (x) incur economic losses when these are offset by accounting prof

    		•
  • Q : Limitation of economies capacity I have

    I have a problem in economics on Production Possibilities Frontiers. Please help me in determining the right answer from the following question. The economy’s capacity to generate/make is NOT limited by the: (i) Amount of resources accessible. (

    		•