All categories

4 years ago

Which of the following correctly describes how price adjustments eliminate a shortage?

Business

1 answer:

vampirchik [111]4 years ago

8 0

Answer:

As the price rises, the quantity demanded decreases and the quantity supplied increases.

Explanation:

When a shortage occurs, demand for a product is high and is not being matched by supply (supply is low).

So to bring demand down and increase supply, we need to increase the price.

According to the law of demand and increase in price results in a decrease in demand.

The law of supply states that when price increases there will be an increase in supply, making more goods available and eliminating shortage.

This is illustrated in the attached diagram.

You might be interested in

Which office has been criticized for placing business interests ahead of environmental concerns?

Delvig [45]

The Trump office has been accused of placing greater importance on their own business interests, and no interest at all on environmental concerns.Trump has made it clear that he has no intention to improve the earth's environment in the future.

6 0

3 years ago

Ahmed Company purchases all merchandise on credit. It recently budgeted the following month-end accounts payable balances and me

Vitek1552 [10]

Answer:

1. Computation of Budgeted amount of Merchandise Purchases

Particulars June July August

Ending Accounts Payable $130,000 $300,000 $120,000

Payments on account $1,500,000 $1,400,000 $1,400,000

$1,630,000 $1,700,000 $1,520,000

Beginning Accounts Payable $150,000 $130,000 $300,000

Purchases $1,480,000 $1,570,000 $1,220,000

2. Computation of Budgeted amount of Cost of Goods Sold

Particulars June July August

Beginning inventory $260,000 $500,000 $300,000

Purchases $1,480,000 $1,570,000 $1,220,000

Cost of goods AFS $1,740,000 $2,070,000 $1,520,000

Ending Inventory $500,000 $300,000 $330,000

Cost of goods sold $1,240,000 $1,770,000 $1,190,000

8 0

3 years ago

A clothing store chain tracks the sale of each product at each location. Managers use this information to calculate the organiza

Ksivusya [100]

Answer:Flexible

Explanation:

According to the question, clothing store tracks the sale at each location so, they are taking a very large base of consumers and they are considering each consumer that is why the quality information is flexible.

Demands of each consumer may vary such that one wants cotton fabric, another wants polyester so this makes the information more flexible as it may vary largely.

3 0

4 years ago

Because of their relatively small national economies, which of the following is most likely considered to be the most important

BARSIC [14]

Answer:

which of the following is most likely considered to be the most important factor for Belgiom, Korea and Canada to take full advantage of specialization?

b. international trade

Explanation:

In general, an economy can be defined as a set of activities that lead to the production and consumption of goods and services that utilize limited resources. An economic system serves to meet the needs of the individual operating in that economy, whether it is production or consumption needs. There are many factors that determine how big or small an economy is, the factors include; culture, laws, history, population, geographical location and other factors that cause necessity. A big economy can be defined as an economy where the amount of economic activities including the production and consumption of goods is at a high level as compared to other economies. On the contrary, a small economy is one whose production, consumption and trading activities is at a relatively low level. We will consider small economies.

Small national economies are countries whose production and consumption levels on a national scale are relatively small. Examples of such countries include; Belgium, Korea and Canada. Since the necessity for production or consumption is not that big, the best factor for specialization is international trade. Small economies can boost their growth by specializing on international trade to increase their market shares in other countries.

8 0

3 years ago

Greenleaf Manufacturers, Inc. projected sales of 86,000 machines for 2022. The estimated January 1, 2022, inventory is 7,500 uni

Burka [1]

the budgeted production (in units) for 2022 will be 98,100

Production + opening stock= sales+ closing stock

Production + 7,500= 86000 + 19600

Production = 98,100

What do you mean by production budget?

The sales forecast and the anticipated amount of finished goods inventory to be on hand are combined to create the production budget, which determines the number of products that must be made (usually as safety stock to cover for unexpected increases in demand).

How important budgeting is in production process?

A production budget aids the business in planning output levels for varying demand times. A corporation can use the downtime to make an extra products to have on hand for a future period when demand increases if it anticipates that demand and production levels will be low in a month.

Learn more about production budget: brainly.com/question/18803390

#SPJ4

3 0

2 years ago