Write the Word or Phrase That Best Completes Each Statement

question 327

Essay

Write the word or phrase that best completes each statement or answers the question.
-Meisha has $25,000 that she wants to invest. She invests it in accounts paying 12%, 7%, and 6% simpleinterest. The account paying 12% is a higher-risk account, so she wants the amount in that account to behalf of the amount she has in the account paying 6% simple interest. If her annual interest is $1945, howmuch is invested at each rate?

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Definitions:

Substitution Price Elasticity

A measure of how much the quantity demanded of one good responds to a change in the price of another good, indicating the degree to which these goods are substitutes.

Utility Function

A numerical model that explains how a consumer gains pleasure or usefulness from using goods and services.

Substitution Effect

The change in consumption patterns due to a change in the relative prices of goods, holding the consumer's utility level constant.

Income Effect

The alteration in the income of a person or the economy, and its effect on the amount of a product or service that is requested.