When the price of a product falls for a normal good, the a. substitution effect will encourage consumers to purchase more of the product, and the income effect will encourage them to purchase less.
b. income and substitution effects will encourage consumers to purchase more of the product.
c. income and substitution effects will encourage consumers to purchase less of the product.
d. substitution effect will encourage consumers to purchase less of the product, and the income effect will encourage them to purchase more.

Ardmore farm and seed has an inventory dilemma. they have been selling a brand of very popular insect spray for the past year. they have never really analyzed the costs incurred from ordering and holding the inventory and currently fave a large stock of the insecticide in the warehouse. they estimate that it costs $25 to place an order, and it costs $0.25 per gallon to hold the spray. the annual requirements total 80,000 gallons for a 365 day year. a. assuming that 10,000 gallons are ordered each time an order is placed, estimate the annual inventory costs. b. calculate the eoq. c. given the eoq calculated in part b., how many orders should be placed and what is the average inventory balance? d. if it takes seven days to receive an order from suppliers, at what inventory level should ardmore place another order?

Suppose the real risk-free rate and inflation rate are expected to remain at their current levels throughout the foreseeable future. consider all factors that affect the yield curve. then identify which of the following shapes that the u. s. treasury yield curve can take. check all that apply.

Explain the relationship between consumers and producers in economic growth and activity