Assume That the Hourly Price for the Services of Personal

question 71

Multiple Choice

Assume that the hourly price for the services of personal trainers has risen and sales of these services have also risen.One can conclude that

• A)the law of demand has been violated.
• B)the number of personal trainers has increased.
• C)the demand for personal trainers has increased.
• D)personal trainers are deliberately charging high prices because they provide services for wealthy clients.

Describe the concepts of normal and inferior goods and how income changes affect their demand.

Demonstrate the impact of interest and wage changes on saving and labor supply decisions, incorporating the substitution and income effects.

Interpret graphical representations of budget constraints, indifference curves, and demand curves.

Distinguish between the substitution effect and the income effect on consumer choice.

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Definitions:

Equipment-based Services

Services that primarily rely on machinery and equipment to deliver value to customers, such as laundry or car rental services.

Intangibility

A characteristic of services that implies they cannot be seen, touched, or made tangible in the same manner as physical products.

Inseparability

A characteristic of services indicating that they are often produced and consumed simultaneously and cannot be separated from their provider.

Nonprofit Organizations

Entities that operate for purposes other than making a profit, focusing on social, charitable, cultural, or educational objectives.