Jamal consumes only two goods: lollipops and chewing gum. He treats these two goods as perfect substitutes, with one lollipop being a perfect substitute for a pack of chewing gum. Initially, the price of a lollipop is $1.15, while packs of chewing gum are $2.88 each. Jamal has $20 per week to spend on these two goods. Suppose the price of chewing gum decreases to $1.72. Required:
a. What is the substitution effect associated with the change in the price of chewing gum?
b. What is the income effect associated with the change in the price of chewing gum?

Afirm that makes electronic circuits has been ordering a certain raw material 250 ounces at a time. the firm estimates that carrying cost is i = 30% per year, and that ordering cost is about $20 per order. the current price of the ingredient is $200 per ounce. the assumptions of the basic eoq model are thought to apply. for what value of annual demand is their action optimal?

On january 1, 2018, jay company acquired all the outstanding ownership shares of zee company. in assessing zee's acquisition-date fair values, jay concluded that the carrying value of zee's long-term debt (8-year remaining life) was less than its fair value by $21,600. at december 31, 2018, zee company's accounts show interest expense of $14,440 and long-term debt of $380,000. what amounts of interest expense and long-term debt should appear on the december 31, 2018, consolidated financial statements of jay and its subsidiary zee? long-term debt $401,600 $398,900 $401,600 $398,900 interest expense $17,140 $17,140 $11,740 $11,740 a. b. c. d.

Select the correct answerwhat is the responsibility of each of the twelve federal reserve's banks in their districts? a.they set the prime rateob.they monitor functioning of banks in their through onsite and offsite reviewsc.they assess taxes in their destnictd.they write fiscal policies