Answer:
b. how much wealth people want to hold in liquid form.
Explanation:
Money demand refers to the amount of liquid assets or wealth, which can be quickly converted to cash, an individual desires hold at a particular point in time, which enables the individual to easily carry out transactions such as exchange of goods and services. It is simply referred to as the desire of people to hold cash. It does include illiquid physical assets that cannot be quickly converted to cash. It includes cash or bank deposits.
Answer: elastic
Explanation:
The price elasticity of supply will be:
The percentage change in price will be:
= (1.50 - 0.50)/0.50 x 100
= 1.00/0.50 × 100
= 200
The percentage change in quantity will be:
= (4 -2)/2 x 100
= 2/2 × 100
= 100
Elasticity = % change in quantity/% Change in Price = 200/100 = 2
Since elasticity = 2, this indicates supply is elastic as it's greater than 1.
Answer:
Explanation: Damaged goods are goods that do not meet up to the required standards of items to be sold and below are ways damaged goods are treated in the books:
1. Damaged goods are included in inventory at their net realizable value.
2. If damaged goods can be sold at a reduced price, they are included in inventory.
3.Damaged goods are not included in inventory if they cannot be sold
4. A loss in value is reported in the period when goods are damaged or become obsolete.
Safety and liquidity. Liquidity means the ability to use it at a moments notice and if saved that is possible whereas if invested that may not always be the case. If invested you won’t be able to use the funds immediately or at least you aren’t guaranteed that you can without a delay. The other imp reason is safety. If you save your money it is safe and retains its value but if invested it’s value can fluctuate which you tolerate and expect in the hopes that over time it will earn you more money.
