Answer:
A. $ 2,936
Explanation:
Corner Market purchased $4,500 worth inventory from the suppliers, and also paid $290 freight bill for those inventory. It also returned 40% and received 2% discounts. Corner Market's final cost of the inventory that it kept is as follows:
Therefore, Merchandise Inventory = $4,500
Less: Purchase Return $(4,500 × 40%) = <u>($1,800)</u>
$2,700
<u>Less: Purchase discounts $(2,700×2%) = ($ 54)</u>
Net Merchandise Inventory = $2,646
<u>Add: Freight bill $ 190 </u>
Final cost of Merchandise Inventory = $2,936
Answer:
The bargaining power of customers
.
Explanation:
As Bethany wants to buy a pair of designer boots and to find the best price, she searches the Internet and compares prices among the eight sites that sell the boots, she is using the bargaining power of buyers or customers from the Porter's five competitive forces. This force illustrates that customers are definitely have many options available with them for buying a particular product. Customers will be having much power when the number of available options increases because it becomes very easy for the customers to choose from those options or they can switch to some other seller quite easily and quickly in this case. Conversely, consumers will have less power when there are only fewer options present in the market. In this case Bethany has 8 different web sites present in front of her and with the single click of mouse button and flick of her fingers, she can easily compare the prices and options, that's why she can practice her bargaining power.
Answer:
a. Both the equilibrium quantity as well as equilibrium price will decline.
b. The equilibrium price will fall while the equilibrium quantity will increase.
c. Both the equilibrium price as well as equilibrium quantity will increase.
Explanation:
a. If an outbreak of food poisoning is traced to eggs, this will cause the demand for eggs to decline. The demand curve will move to the left. Both the equilibrium quantity as well as equilibrium price will decline.
b. Scientists breed a new chicken that lays twice as many eggs each week. This will cause the supply of eggs to increase. The supply curve will move to the right. As a result, the equilibrium price will fall while the equilibrium quantity will increase.
c. A popular talk show host convinces her viewers to eat an egg a day. This will cause the demand for eggs to increase. The demand curve will move to the right. As a result, both the equilibrium price as well as the equilibrium quantity will increase.