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1 year ago

If a seller facing excess demand is unable to raise the price of the good due to a price ceiling, a likely result will be:

Business

1 answer:

Anuta_ua [19.1K]1 year ago

3 0

A likely result will be a decrease in the quality of a product.

The fee ceiling is a state of affairs while the price charged is greater than or less than the equilibrium fee decided with the aid of market forces of demand and deliver. It's been found that higher price ceilings are useless. price ceiling has been discovered to be of extraordinary importance within the residence rent marketplace.

A price ceiling is a legal maximum rate that one will pay for some good or carrier. A government imposes rate ceilings as a good way to preserve the price of some necessary precise or services low-cost. as an example, in 2005 at some stage after Hurricane Katrina, the price of bottled water expanded above $five according to the gallon.

A rate ceiling continues a fee from growing above a sure level (the “ceiling”), even as a fee ground continues a rate from falling underneath a given degree (the “ground”). This phase uses the call for and delivers a framework to research price ceilings. the following section discusses rate flooring.

Learn more about the price ceiling here brainly.com/question/1448982

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The following are the transactions of Spotlighter, Inc., for the month of January:

coldgirl [10]

Answer:

Spotlighter, Inc.

Cash

Account Titles Debit Credit

Beginning balance $0

Notes Payable $4,740

Common stock $5,430

Equipment $1,000

Supplies $1,100

Ending balance $8,070

Notes Payable

Account Titles Debit Credit

Beginning balance $0

Cash $4,740

Equipment 1,600

Ending balance $6,340

Common stock

Account Titles Debit Credit

Beginning balance $0

Cash $5,430

Equipment

Account Titles Debit Credit

Beginning balance $0

Cash $1,000

Notes Payable $1,600

Ending balance $2,600

Supplies

Account Titles Debit Credit

Beginning balance $0

Cash $1,100

Accounts Payable $1,500

Ending balance $2,600

Accounts Payable

Account Titles Debit Credit

Beginning balance $0

Supplies $1,500

Ending Balance $1,500

Explanation:

1) Data and Transaction Analysis:

a. Cash $4,740 Notes Payable $4,740

b. Cash $5,430 Common stock $5,430

c. Equipment $2,600 Cash $1,000 Notes Payable $1,600

d. Supplies $1,100 Cash $1,100

e. Supplies $1,500 Accounts Payable $1,500

6 0

3 years ago

Bank reserves are $200, the public holds $1000 in currency, and the reserve-deposit ratio is 20%. What is the Value of Bank Depo

Alja [10]

Answer:

What is the Value of Bank Deposits?

bank deposits = bank reserves / required reserve ratio = $200 / 20% = $1,000

What is the Money Supply?

money supply = bank deposits + currency held by the public = $1,000 + $1,00 = $2,000

Suppose that the Fed sells $50 worth of bonds in an "open market sale." Assuming that the public does not wish to change the amount of currency it holds, what is the new money supply after this open market purchase?

if the FED sells $50 worth of bonds, money supply will decrease by $50 x (1 / 20%) = $50 x 5 = $250

total money supply = $2,000 - $250 = $1,750

6 0

3 years ago

XYZ Company has issued 10%, $100 par non-cumulative preferred stock. Two years ago, XYZ omitted its preferred dividend. Last yea

strojnjashka [21]

Answer:

In order to make the distribution to common shareholders, each preferred share must be paid a dividend of:

$5 per share.

Explanation:

The preferred stock is non-cumulative. This implies that XYZ's preferred stockholders are not being owed for the previous two year's dividend that was not paid. Non-cumulative preferred stock does not attract dividend arrears whenever it was not declared. It is cumulative preferred stock that attracts such arrears to be carried forward until they are paid.

4 0

3 years ago

An airline manufacturer incurred the following costs last month (in thousands of dollars):

enot [183]

Answer:

Instructions are listed below

Explanation:

- Direct materials are those materials and supplies that are consumed during the manufacture of a product, and which are directly identified with that product.

- Direct labor is production or services labor that is assigned to a specific product, cost center, or work order.

- Manufacturing overhead refers to indirect factory-related costs that are incurred when a product is manufactured.

- Period costs are not directly tied to the production process. Overhead or sales, general, and administrative (SG&A) costs are considered period costs. SG&A includes costs of the corporate office, selling, marketing, and the overall administration of company business.

In this exercise:

Direct Material:

Airplane seats . . . . . . . . . . . . . . . . . . . . . . . . . $220

Jet engines . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,700

Total= $1920

Direct labor:

Assembly workers' wages . . . . . . . . . . . . . . . . . . . $600

Machine operators' health insurance . . . . . . . . . . $40

Total= $640

Indirect labor:

Production supervisors' salaries . . . . . . . . . . . . . . $170

Factory janitors' wages . . . . . . . . . . . . . . . . . . . . . $60

Total= $230

MOH:

Machine lubricants . . . . . . . . . . . . . . . . . . . . . $35

Plant utilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $160

Depreciation on forklifts . . . . . . . . . . . . . . . . . . . . $110

Total= $305

Period cost:

Property tax on corporate marketing office . . . . . $25

Cost of warranty repairs . . . . . . . . . . . . . . . . . . . . $230

Depreciation on administrative offices . . . . . . . . . $60

Cost of designing new plant layout . . . . . . . . . . . . $165

Total= $480

3 0

3 years ago

Elliptical Consulting is a consulting firm owned and operated by Jayson Neese. The following end-of-period spreadsheet was prepa

Vesna [10]

Question Completion:

Prepare income statement, statement of owners' equity, and a balance sheet.

Answer:

Elliptical Consulting

1. ELlIPTICAL CONSULTING

Income Statement for the year ended June 30, 2076:

Fees Earned $71,580

Salary Expense 28,670

Supplies Expense 3,340

Depreciation Exp. 1,990

Miscellaneous Exp. 3,010 37,010

Net Income $34,570

Statement of Owners' Equity for the year ended June 30, 20Y6:

Jayson Neese, Capital $38,320

Net Income 34,570

Jayson Neese, Drawing (4,880)

Jayson Neese, Equity $68,010

Balance Sheet as of June 30, 20Y6:

Assets:

Cash $15,780

Accounts Receivable 37,570

Supplies 640 $53,990

Office Equipment 30,810

Accumulated Depreciation 6,160 $24,650

Total assets $78,640

Liabilities + Equity:

Accounts Payable $10,140

Salaries Payable 490

Total liabilities $10,630

Jayson Neese, Capital $68,010

Total liabilities and equity $78,640

Explanation:

a) Data and Calculations:

Elliptical Consulting End-of-Period Spreadsheet For the Year Ended June 30, 20Y6

Unadjusted Adjusted

Trial Balance Adjustments Trial Balance

Account Title Dr. Cr. Dr. Cr. Dr. Cr.

Cash 15,780 15,780

Accounts Receivable 37,570 37,570

Supplies 3,980 (a) 3,340 640

Office Equipment 30,810 30,810

Accumulated Depreciation 4,170 (b) 1,990 6,160

Accounts Payable 10,140 10,140

Salaries Payable (c) 490 490

Jayson Neese, Capital 38,320 38,320

Jayson Neese, Drawing 4,880 4,880

Fees Earned 71,580 71,580

Salary Expense 28,180 (c) 490 28,670

Supplies Expense (a) 3,340 3,340

Depreciation Exp. (b) 1,990 1,990

Miscellaneous Exp. 3,010 3,010

Totals 124,210 124,210 5,820 5,820 126,690 126,690

Adjusted

Trial Balance

Account Title Dr. Cr.

Cash 15,780

Accounts Receivable 37,570

Supplies 640

Office Equipment 30,810

Accumulated Depreciation 6,160

Accounts Payable 10,140

Salaries Payable 490

Jayson Neese, Capital 38,320

Jayson Neese, Drawing 4,880

Fees Earned 71,580

Salary Expense 28,670

Supplies Expense 3,340

Depreciation Exp. 1,990

Miscellaneous Exp. 3,010

Totals 126,690 126,690

6 0

2 years ago