Economist George Stigler once wrote that, according to consumer theory, if consumers do not buy less of a commodity when their incomes rise, they will surely buy less when the price of the commodity rises. Ex-plain this statement using the concepts of income and substitution effects.
Step 1 of 3
END OF CHAPTER 4 Acid test ratio: quick assets/ current liabilities - Cash +short term investments + receivables divided by current liabilities. Current ratio : current assets/current liabilities Gross margin ratio: net sales – cost of goods sold / net sales - Percentage of every dollar of revenue that is available to pay for expenses and provide profit. CHAPTER 4 HOMEWORK QUESTIONS 1) November 7 returned 25 defective unifts from the November 5 purchase and received full credit. 11/7 Dr Accounts Pay 250 Cr Merch Inv 250 25 x 10 = 250 Accounts Payable T table Credit 6000 Debit 250 Total 5750 2) Nov. 5 Merchandise Inventory 600 deb Accounts payable 6000 credit 600
Textbook: Principles of Microeconomics
Author: N Gregory Mankiw
The full step-by-step solution to problem: 12 from chapter: 21 was answered by , our top Business solution expert on 09/09/17, 04:24AM. Principles of Microeconomics was written by and is associated to the ISBN: 9781285165905. Since the solution to 12 from 21 chapter was answered, more than 484 students have viewed the full step-by-step answer. This textbook survival guide was created for the textbook: Principles of Microeconomics, edition: 7. This full solution covers the following key subjects: . This expansive textbook survival guide covers 22 chapters, and 222 solutions. The answer to “Economist George Stigler once wrote that, according to consumer theory, if consumers do not buy less of a commodity when their incomes rise, they will surely buy less when the price of the commodity rises. Ex-plain this statement using the concepts of income and substitution effects.” is broken down into a number of easy to follow steps, and 46 words.