When the price of a product rises, consumers with a fixed money income shift their purchases to other products whose prices are now relatively lower. This statement describes Group of answer choices an inferior good. the rationing function of prices. the income effect. the substitution effect.

You estimate that your cattle farm will generate $0.15 million of profits on sales of $3 million under normal economic conditions and that the degree of operating leverage is 2. (leave no cells blank - be certain to enter "0" wherever required. do not round intermediate calculations. enter your answers in millions.) a. what will profits be if sales turn out to be $1.5 million?