Answer:
increase due to the income effect. i
Explanation:
When the price of a good changes, two effects affects the change in quantity demanded :
1. The income effect
2. the substitution effect
The income effect is when an increase in price lowers consumer's purchasing power, holding money income constant.
the substitution effect arises when as a result of a rise in the price of a good, the good becomes more expensive relative to its substitutes. Consumers not consume less of the good and more of the substitute. This leads to a movement up along the demand curve for that goods and not a movement along the demand curve for the good and not a shift of the demand curve.
If the price of the good decreases. The good becomes cheaper when compared with substitutes. As a result, the demand for the good increases while that of the substitutes decreases.
When the price of pizza decreases, holding the consumer's income constant, the purchasing power of Tonya increases. As a result, of the income effect, the demand for pizza increases
Answer:
Cam residual income 2,174,000
Phone residual loss 617,000
Explanation:
The residual income is the difference between the required return on asset and the net income.
<u>First step</u> is to calcualte the required return on the asset
we multiply each division assets by 12%
<u>then,</u> we compare with the net income to get the residual income.
Answer: 10% or $2,000,000
Explanation:
Seeing as no figures were produced, we will have to do this ourselves.
We will make assumptions which include the following,
Life of the equipment = 10 Years
Salvage value = 0
Those are our 2 assumptions.
In that case then,
The Annual Depreciation will be,
Depreciation = (Cost of equipment - Estimated salvage value) / Estimated useful life
= (20 - 0) / 10
= $2 million
Seeing as 2 million is,
= 2/20 * 100
= 10%
That would mean that annual depreciation costs at that facility will rise by $2 million or 10%.
If you need any clarification do react or comment.
Answer:D
Explanation:The answer is D because the value of a common stock depends on the amount the stock was purchased for and the amount it was sold for.
Answer:
supplies expense 800 debit
supplies 800 credit
--to record year-end adjustment on supplies used--
Explanation:
we will adjust for the amount of supplies consumed over the period:
1,200 beginning - 400 ending = 800 consumed.
We are going to decrease the assets account supplies and recognize na expense account to represent the use of the supplies.
The assets will be credited as is decreasing and the expense debit to make debit = credit