Question 25(Multiple Choice Worth 4 points)

2. Explain what happens to the demand curve

astraxan [27]

Answer:

The law of demand states that consumers will request more of a product if its price decreases. For supplement goods, an increase in the price of one will increase demand for the other. The demand curve for apples will react as follows.

Explanation:

A). More people begin to prefer apples to oranges.

Should peoples' preference change to apples, the demand for oranges will decrease while that of apples will increase. The demand curve is downward sloping. If demand increases, the demand curve will shift to the right. It is also referred to as moving outwards. In this case, the demand curve for apples will shift to the right.

B) The price of peaches rises (because peaches are a substitute for apples).

Substitutes imply a good can be used in place of another. If the price of a substitute increases, it demands decreases. The demand for the substitute good will go up. An increase in the price of peaches will increase the demand for apples. As a result, the demand curve will shift outwards. In other words, shift to the right.

C. People's incomes rise (and apples are a normal good).

Demand for normal goods increase as the people's income rises. More people will afford to buy apples. If people are now earning more, the demand for apples will go up. The demand curve will shift to the right to indicate a surge in demand.

5 0

3 years ago

Robert, the president of the labor union of a company, speaks to the management of the company about the requirement for an extr

vodomira [7]

Answer:

Taft-Hartley Act

Explanation:

Taft-Hartley Act is also known as the labour management relations act of 1947 and it restricts the activities and powers of labour unions. It stops unions for engaging in unfair labour practices such as jurisdictional strike, wild strike, political strike, secondary boycotts, and monetary donations to political campaigns.

Robert has violated the Taft-Hartley act by creating a fictional role in the company in order to get his cousin a job.

8 0

3 years ago

A video-recording system was purchased 4 years ago at a cost of $37,000. A 5-year recovery period and DDB (Double Declining Bala

AysviL [449]

Answer:

The trade in value is higher than the book value by $ 205

Explanation:

Computation of Book value

In a double declining balance method of depreciation, the rate of depreciation is double the straight line rate and is depreciated on a declining balance.

Cost of Equipment $ 37,000

Estimated useful life ( Recovery Period) 5 years

Straight Line Depreciation rate 20 %

Double declining Method depreciation rate 40 %

Cost $ 37,000

Depreciation for year 1 at 40 % $(14,800)

Depreciable basis for year 2 $ 22,200

Depreciation for year 2 at40 % $ ( 8,880)

Depreciable basis for year 3 $ 13,320

Depreciation for year 3 at 40 % $ (5,328)

Depreciable basis for year 4 $ 7,992

Depreciation for year 4 at 40 % $ 3,197)

Depreciable basis for year 5 $ 4,795

The depreciable basis for year 5 is the net book value after 4 years

The trade value is $ 5,000

The trade in value is higher by $ 205

8 0

3 years ago

Which of the following accounts is not closed at the end of the year?

Leviafan [203]

Not 100% sure but i THINK it is A/P. I know for sure that it is not the income summary

6 0

3 years ago

Sam owns 70 percent of the stock of Club Corporation. Unrelated individuals own the remaining 30 percent. For a stock redemption

zimovet [89]

Answer: C.Any percentage less than 50 percent

Explanation:

In relation to the law on meeting the criteria to be treated as an exchange under the "substantially disproportionate" test as stipulated by U.S. Code § 302.Distributions in redemption of stock, Sam must own the lesser of 2 options of Club Corporation stock;

1. Less than 50% of the stock after the redemption

2. Less than 80% of Sam's previous ownership percentage

= 80% * 70%

= 56%

The lesser option is that of owning less than 50% so Sam must own less than 50% of stock after the redemption to meet the requirement to be treated as an exchange under the "substantially disproportionate" test.

4 0

3 years ago