If the Bank Charges a Fee of $12 Each Time

question 40

Short Answer

If the bank charges a fee of $12 each time the average balance drops below $5,000, and this has happened seven times during the year, what is the total in these fees that the physician will pay?

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Definitions:

Limited Budget

A financial constraint that limits the amount of money available for spending or investing.

Marginal Utilities

refers to the additional satisfaction or utility gained by consuming one more unit of a good or service.

Money Income

Money income includes the total earnings received by an individual or household in the form of wages, salaries, benefits, and returns on investments over a period.

Substitution Effect

The change in consumption patterns due to a change in the relative prices of goods, where individuals substitute away from more expensive goods towards cheaper ones.