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just olya [345]
2 years ago
6

Chicken and tuna fish are substitutes in consumption. Suppose that new technology decreases the cost of catching tuna. This woul

d result in _________ in the equilibrium quantity and ________ in the equilibrium price for chicken.
A. an increase; an increase
B. a decrease; a decrease
C. an increase; a decrease
D. a decrease; an increase
E. There is not enough information to determine what will happen.
Business
1 answer:
mihalych1998 [28]2 years ago
6 0

Answer:

B. a decrease; a decrease

Explanation:

Substitutes' goods are products that can be consumed in place of each other.  If one product is missing, consumers will be ready and willing to buy its substitute. An increase or fall in the price of a good or services will cause the demand for its substitute to move in the opposite direction.

Equilibrium quantity is when supply matches the demand. If the price of Tuna fish decreases, its demand will increase as more customers will afford it. Tuna and chicken are substitutes, should the price of Tuna decrease,  customers will prefer to consume Tuna over chicken.  Consequently, the demand for chicken will reduce w leading to a decrease in its price.

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The following T-account is a summary of the cash account of Buffalo Industries. Cash (Summary Form) Balance, Jan. 1 21,600 Recei
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Answer:

$702,000

Explanation:

The cash flow statement categories the company's transactions in a financial period into 3 groups; these are operating, investing and financing.

The net profit/loss, depreciation, changes in current assets (other than cash) and liabilities are considered as operating activities including income taxes.  

The sale of assets, interest received, purchase of investments are examples of investing activities while the issuance of stocks, debt principal deduction (loan settlement), issuance of debt securities etc are examples of financing activities.

An increase in assets other than cash is an outflow while an increase in liabilities is an inflow. Depreciation and other non-cash expenses deducted in the income statements are added back while the non-cash income such gain on asset are deducted from net income.

The amount of net cash provided (used) by financing activities should be reported in the statement of cash flows

= -$108,000 + $810,000

= $702,000

Other transactions are either operating or investing activities related.

5 0
2 years ago
Hobson Company bought the securities listed below during 2020. These securities were classified as trading securities. In its De
Wewaii [24]

Answer:

$50,800

Explanation:

Security     Cost       Fair value     Gain(loss)

X              371,000    343,500        -27,500  

Y              185,000     162,400        -22,600  

Z              <u>424,000</u>    <u>407,800</u>        <u>-16,200 </u>

Total        <u>980,000</u>    <u>913,700</u>         <u>-66,300</u>

Unrealized holding loss on Income statement ended June 30,2021 = $66,300 - $15,500 = $50,800

3 0
3 years ago
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A centrally administered WAN network

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2 years ago
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2 years ago
Each firm can produce at most one car. Suppose the market for electric cars is competitive. Why is the equilibrium price in this
lisabon 2012 [21]

Answer:

Consumer surplus = (60000 - 40000)+ (90000 - 40000)+(40000 - 40000) = $70000

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Social surplus = Consumer surplus +Producer Surplus= 70000 + 30000 = $100000

Consumer surplus = (Willingness to pay – Price)

Producer surplus = ( Price –Cost)

7 0
3 years ago
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