Answer:
True (Dead-weight loss )
Explanation:
When the market is not allowed to adjust towards the equilibrium the economics efficiency is lost. When the supply is excessive compared to demand some part of supply remains intact, which means that small of amount of supply does not contribute to economics and allocation efficiency and considered as a dead-weight loss. The supply is forgone because the market is not allowed to stabilise.
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Answer: $110,432
Explanation:
The cost allocated to the Office furniture is the percentage of total appraised cost * the price paid for the basket purchase because it shows what proportion of the Basket Purchase should be ascribed to the Office furniture.
Total Appraised value = 140,000 + 460,000 + 110,000
= $710,000
Office furniture Proportion = 140,000/710,000
= 0.1971830985
=0.1972
Amount to be allocated to Office furniture = 0.1972 * 560,000
= $110,432
$110,432 should be allocated to the office furniture.
= $110,422.