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3 years ago

The 20 largest firms in the US sold over one ________ dollars in 1990

Business

1 answer:

Agata [3.3K]3 years ago

6 0

Billion
This industry is booming

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Why is a price floor set above an equilibrium price tends to cause persistent imbalances in the market?

kotykmax [81]

Answer:

A price floor set above the equilibrium price will result in a surplus of supply.

Explanation.

An equilibrium price refers to the price at which demand for a service or product is equivalent to the quantity of the product or service supplied in the market.

Setting a price floor above the equilibrium price essentially means that the set prices will be higher than what demand is willing to pay for the product or service. Demand will therefore purchase fewer quantity of the product offered by supply at the prevailing price than they would have at equilibrium price.

Since the price floor will raise the product price to considerably higher than the equilibrium price, supply will be willing to provide higher volumes of the product at the prevailing price than at equilibrium price.

This will lead to a mismatch in the market between supply and demand resulting into a surplus.

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3 years ago

Cassini Company Ltd. publishes a monthly sports magazine, Fishing Preview. Subscriptions to the magazine cost $28 per year. Duri

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Answer:

Cassini Company Ltd

Date Account Titles and Explanation Debit Credit

Nov 2017 Cash (6,300*$28) $176,400

Unearned subscription revenue $176,400

(To record the receipts of subscription)

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(To record the revenue earned)

March '18 Unearned subscription revenue $44,100

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(To record the revenue earned)

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