Ask Question
BusinessBusiness
5 December, 21:32

D. Assume that the mix of goods in a basket is kept constant for long periods. If the price of one good rises very rapidly over several years, what will happen to the relative importance of the other goods in the basket? Is this a problem?

+2
Answers (1)
  1. 6 December, 00:18
    0
    Not affected much; Not a problem

    Explanation:

    Even though in most cases consumers are sensitive to price. Remember, this mix goods are NOT said to be close substitutes. So there should be little or no effect on the importance of the other goods.

    This is not a problem because even though the price of one good rises very rapidly over several years, the other good is not affected by price changes.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “D. Assume that the mix of goods in a basket is kept constant for long periods. If the price of one good rises very rapidly over several ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Baby boomers are less likely to associate retirement with "the beginning of the end" and see it instead as a new chapter in their lives with new activities, interests, careers, or even relationships. a. True. b. False.
Answers (1)
The Law of Demand is a rule stating that more will be demanded at lower prices and less at higher prices; inverse relationship between price and quantity demanded. Question 14 options: True False
Answers (2)
Advances in wireless communication technology reduce the non-financial costs of long commutes: People who ride trains can get work done, and people who drive cars have more entertainment options.
Answers (1)
Leola just finished high school. She would like to earn a bachelor's degree so she can get a job in Manufacturing.
Answers (1)
Kostner Financial Services, Inc. performed accounting services for a client in A bill was mailed to the client on December 30. The company received the client's check by mail on January 5.
Answers (2)
New Questions in Business
Which one of the following statements is correct? Multiple Choice a. All of the major stock exchanges are U. S. based. b. The NYSE was created by the National Association of Securities Dealers in the early 1930s. c.
Answers (1)
Which of the following is an example of capital outflow for Germany? a. German company Haribo sells a production facility in Ireland to an Irish competitor b. Volkswagen exports the new 2014 VW Beatle to the United Kingdom c.
Answers (1)
Financial institutions are more diversified today than they were in the past, when federal laws kept investment banks, commercial banks, insurance companies, and similar organizations quite separate.
Answers (1)
Corny and Sweet grows and sells sweet corn at its roadside produce stand. The selling price per dozen is $4.00, variable costs are $2.00 per dozen, and total fixed costs are $1,200.00. What are breakeven sales in dollars?
Answers (1)
Looking at motivation from a content theory approach, the psychological contract suggests that, in return for time, effort, and other considerations, individuals want to receive:
Answers (1)
Home » Business » D. Assume that the mix of goods in a basket is kept constant for long periods. If the price of one good rises very rapidly over several years, what will happen to the relative importance of the other goods in the basket? Is this a problem?
Sign Up Forgot Password?