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1 year ago

Suppose there is a simultaneous increase in demand and decrease in supply, what effect will this have on the equilibrium price?

1 answer:

5 0

Although the impact on the equilibrium quantity cannot be determined, a rise in demand and a decrease in supply will result in an increase in the equilibrium price. 1. Consumers now place a higher value on goods, and producers must charge a higher price to offer the goods; as a result, prices will rise for all quantities.

If demand increases at the same time as supply increases, as is the case in the scenario depicted, the new equilibrium price will be greater than the initial equilibrium price.

We therefore know that an increase in supply decreases equilibrium price and increases quantity, while a rise in supply increases equilibrium price and decreases quantity (and vice versa) (and vice versa).

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EB15.

Tems11 [23]

Answer:

Cost per unit under variable costing $

Direct material 110

Direct labour 150

Variable manufacturing overhead <u> 75 </u>

Cost per unit <u>335 </u>

<u />

Cost per unit under absorption costing $

Direct material 110

Direct labour 150

Variable manufacturing overhead 75

Fixed manufacturing overhead ($2,700,000/90,000) <u>30</u>

Cost per unit <u>365</u>

Explanation:

In variable costing, cost per unit is calculated by the addition of all variable costs while in absorption costing, fixed manufacturing overhead application rate is added to the variable costs in order to obtain the cost per unit.

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3 years ago

Is a liability that represents the amount the company owes to others as a result of issuing a promissory note.

solong [7]

A note payable is a financial document considered a liability that represents that it records that the company that signs it has the obligation to pay on the specific date.

<h3>What is a note payable?</h3>

It is a document that commits its issuer (the company) to pay a certain amount, within a specific period.

Its characteristic is the exchange action, which refers to the document being returned to the subscriber in exchange for payment.

Therefore, we can conclude that a note payable is a financial document considered a liability that represents that it records that the company that signs it has the obligation to pay on the specific date.

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4 0

2 years ago

Smith Company reported $350,000 in book income before income tax during 20X1, its first year of operation. The tax depreciation

Sloan [31]

Answer:

$73,500

Explanation:

Income tax payable = Book income before income tax*Tax rate

Income tax payable = $350,000*21%

Income tax payable = $73,500

Therefore, the amount of income tax payable that Smith should report in its December 31, 20X1, balance sheet is $73,500

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3 years ago

Metlock has been in business several years. At the end of the current year, the unadjusted trial balance shows: Accounts Receiva

Vesnalui [34]

Answer:

the answer is given below;

Explanation:

Allowance for Doubtful Accounts-opening ($5,355)

Allowance for doubtful accounts-closing ($300,000*8%) $24,000

Bad Debt Expense $18,645

Bad Debt Expense Dr.$18,645

Allowance for Doubtful Accounts Cr.$18,645

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3 years ago

Suppose that Congress is considering an investment tax credit, which subsidizes domestic investment. Which of the following accu

Mashcka [7]

Answer:A. Trade balance increases Exchange rate decreases

C. False

D. False

Explanation:

A subsidy on domestic investment will encourage more investment from the populace as the cost of investment will reduce which invariably means more goods are produce, export increase, trade balance increases and exchange rate decrease.

The real Interest rate will equally fall due to the subsidy and domestic investment increases.

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3 years ago