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2 years ago

If there's upward pressure on price how does this affect the supply side of the market?

Business

1 answer:

taurus [48]2 years ago

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If there's upward pressure on price, there would be an increase in the quantity supplied.

<h3>What the relationship between price and the quantity supplied?</h3>

There is a positive relationship between price and the quantity supplied. When there is an increase in price, the quantity supplied increases all things being equal.

The positive relationship between price and the quantity supplied is a result of the desires to earn more profit. So when price increases, in order to earn higher income, producers would increase the quantity supplied. This postulation is in line with the law of supply.

To learn more about the law of supply, please check: brainly.com/question/26374465

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As sales manager, Joe Batista was given the following static budget report for selling expenses in the Clothing Department of So

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Answer:

Soria Company

Clothing Department

Selling Expense Flexible Budget Report for the month ended October 31, 2017: (Joe Batista)

Budget Actual Variance Comment

Sales in units 10,000 10,000 0 Neither

Flexed Variable Expenses:

Sales Commission $2,400 $2,400 0 Neither

Advertising Exp. $1,200 $900 $300 Favorable

Travel Expense $4,000 $4,000 0 Neither

Free Samples $2,300 $1,300 $1,000 Favorable

Total Variable $9,900 $8,600 $1,300 Favorable

Fixed Expenses:

Rent $1,700 $1,700 0 Neither

Sales Salaries $1,100 $1,100 0 Neither

Office Salaries $800 $800 0 Neither

Depreciation $400 $400 0 Neither

Total Fixed $4,000 $4,000 0 Neither

Total Expenses $13,900 $12,600 $1,300 Favorable

Explanation:

a) Budgeted Variable Costs were flexed as follows:

i) Sales Commission = $1,872/7,800 x 10,000 = $2,400

ii) Advertising Expenses = $936/7,800 x 10,000 = $1,200

iii) Travel Expense = $3,120/7,800 x 10,000 = $4,000

iv) Free Samples = $1,794/7,800 x 10,000 = $2,300

b) The fixed costs could not be flexed as they remain invariable no matter the activity level.

c) Flexible budget is a budget that adjusts or flexes with changes in volume or activity. It is a more accurate way of assessing performance because it is based on actual volume or activity level unlike a static budget, which remains unchanged.

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3 years ago

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Abbott Landscaping purchased a tractor at a cost of $39,000 and sold it three years later for $19,800. Abbott recorded depreciat

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Answer:

The journal entry is as follows:

Cash A/c Dr. $12,400

Accumulated Depreciation - Equipment A/c Dr. $21,900

Loss on sale of equipment A/c Dr. $4,700

To Equipment $39,000

(To record the sale)

Working notes:

Accumulated Depreciation - Equipment:

= [(Cost of tractor - Residual value) ÷ Service life] × No. of years

= [(39,000 - 2,500) ÷ 5] × 3

= $21,900

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3 years ago

If the United States government raises the income taxes on the wealthiest Americans, while increasing welfare payments to the po

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Answer:

(Decrease, Increase)

Explanation:

When the government formulates and implements policies aimed at increasing equality, the society will experience a reduction in the level of efficiency. For example, an increase in income tax on wealthiest Americans, and redistribution of the tax revenue to the poorest Americans would may discourage the wealthy from taking more income-generating activities which create jobs, this is not optimal. At the same time, this policy would reduces the peoples’ incentive to work hard to earn their own money.

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3 years ago

What are the equilibrium price and the equilibrium quantity? b. Suppose the price is currently $5. Explain what problem would ex

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The question is incomplete. See the attached image for the missing table showing the demand and supply schedule.

Answer/Explanation:

a. Equilibrium price is the price at which Qd = Qs. Hence, equilibrium price = $4, while equilibrium quantity is the quantity demanded at the equilibrium price, i.e. where quantity demanded = quantity supplied. Therefore equilibrium quantity = 8,000

b. At $5, there would be excess quantity supplied, i.e. Qs · Qd = 10,000 · 6,000 = 4,000. Hence, there would be wastage of resources as a result of surplus. This would lead to decrease in price in order to avoid the wastage of resources.

c. At $2, there would be excess quantity demanded, i.e. Qd · Qs = 12,000 · 4,000 = 8,000. This would lead to increase in price as a result of acute shortage in quantity supplied.

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4 years ago

Which is a Public Good? Answer choices are below.

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All or just a. ............................

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