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kotykmax [81]
3 years ago
10

Brady, who has ordinary-shaped indifference curves, buys 16 ounces of salt each year. Even when the price of salt doubles, Brady

continues to purchase exactly 16 ounces.
To help you answer this question, it may be helpful to use indifference curves and budget constraints to depict Brady's behavior graphically on a sheet of paper.

Which of the following statements is true?

a. Salt is an inferior good for Brady since the income effect is positive.
b. Salt is a normal good for Brady since the income effect is negative.
c. Salt is an inferior good for Brady since the income effect is positive.
d. Salt is a normal good for Brady since the income effect is positive.
Business
1 answer:
NNADVOKAT [17]3 years ago
5 0

Answer:

No option is correct, but I believe that one option was not copied appropriately since A and C are the same (although both are wrong).

The correct answer is Salt is an inferior good for Brady since the income effect is negative.

Explanation:

Brady's demand for salt is perfectly inelastic, in other words, his demand curve for salt is vertical since no matter the price, he always purchases the same amount.

Salt is an inferior good for Brady since the income effect is negative. He will continue to buy salt regardless of its price.

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Answer:

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C. Asset and liability will increase by $11,000

D. Asset will increase

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F. Asset will increase and decrease by $5,800

G. Asset will decrease

H. Asset will increase

I. Liability will decrease

J. Asset and capital will decrease by $1,200

Explanation:

Accounting equation is Asset = Liabilities + Capital

Accounting equation is affected in business transaction. The transaction in business have different effects some transaction are like hybrid which impacts the multiple accounts balances. There are some transactions which just involve asset side transaction increase and decrease on the same account this will offset the balance and no effect on equation.

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The individual firm in a purely competitive labor market faces:
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Answer:

The correct answer is D. perfectly elastic labor supply curve and a downsloping labor demand curve.

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A large number of small sellers and buyers exist in this type of market. No entity is so powerful that it can change the face or direction of the industry. No company can produce any control over the price or quantity of the product. Although each company increase or decrease prices and production, the industry as a whole remains unchanged.

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Journalizing Transactions in Template, Journal Entry Form, and T-Accounts Creative Designs, a firm providing art services for ad
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Answer:

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June 1:

Assets (Cash +$12,000) = Liabilities + Equity (Common Stock +$12,000)

June 2:

Rent Expense $950 Cash $950

Assets (Cash -$950) = Liabilities + Equity (Retained Earnings - $950)

June 3:

Office Equipment $6,400 Accounts Payable $6,400

Assets (Office Equipment +$6,400) = Liabilities (Accounts payable +$6,400) = Equity

June 6:

Art Materials & Other Suppliers $3,800 Cash $1,800 Accounts Payable $2,000

Assets (Supplies +$3,800 Cash -$1,800) = Liabilities (Accounts payable +$2,000) = Equity

June 11:

Accounts Receivable $4,700 Service Revenue $4,700

Assets (Accounts Receivable +$4,700) = Liabilities + Equity (Retained Earnings +$4,700)

June 17:

Cash $3,250 Accounts Receivable $3,250

Assets (Cash +$3,250 Accounts Receivable -$3,250) = Liabilities + Equity

June 19:

Accounts Payable $3,000 Cash $3,000

Assets (Cash -$3,000) = Liabilities (Accounts payable -$3,000) + Equity

June 25:

Dividends $900 Cash $900

Assets (Cash -$900) = Liabilities + Equity (Retained Earnings -$900)

June 30:

Utilities Expense $350 Salaries Expense $2,500 Cash $2,850

Assets (Cash -$2,850) = Liabilities + Equity (Retained Earnings -$2,850)

b. Journal Entries:

June 1:

Debit Cash $12,000

Credit Common Stock $12,000

To record the issuance of common stock.

June 2:

Debit Rent Expense $950

Credit Cash $950

To record the payment of rent expense for the month.

June 3:

Debit Office Equipment $6,400

Credit Accounts Payable $6,400

To record the purchase of office equipment on account.

June 6:

Debit Art Materials & Other Suppliers $3,800

Credit Cash $1,800

Credit Accounts Payable $2,000

To record the purchase of supplies for cash and on account.

June 11:

Debit Accounts Receivable $4,700

Credit Service Revenue $4,700

To record the earning of revenue for services rendered.

June 17:

Debit Cash $3,250

Credit Accounts Receivable $3,250

To record the collection of cash from customers on account.

June 19:

Debit Accounts Payable $3,000

Credit Cash $3,000

To record payment to suppliers on account.

June 25:

Credit Dividends $900

Credit Cash $900

To record the payment of cash dividends.

June 30:

Debit Utilities Expense $350

Debit Salaries Expense $2,500

CreditCash $2,850

To record the payment of expenses.

c. June 1:

Cash

Account Titles        Debit      Credit

Common Stock      $12,000

Rent Expense                         $950

Art Materials & Suppliers       1,800

Accounts receivable 3,250

Accounts Payable                 3,000

Dividends                                900

Utilities Expense                     350

Salaries Expense                 2,500

Common Stock

Account Titles        Debit      Credit

Cash                                    $12,000

June 2:

Rent Expense

Account Titles        Debit      Credit

Cash                      $950

June 3:

Office Equipment

Account Titles        Debit      Credit

Accounts Payable  $6,400

Accounts Payable

Account Titles        Debit      Credit

Office Equipment               $6,400

Art materials & supplies      2,000

Cash                     $3,000

June 6:

Art Materials & Other Suppliers

Account Titles        Debit      Credit

Cash                        $1,800

Accounts Payable   2,000

June 11:

Accounts Receivable

Account Titles        Debit      Credit

Service Revenue $4,700

Cash                                    $3,250

Service Revenue

Account Titles        Debit      Credit

Accounts Receivable          $4,700

June 25:

Dividends

Account Titles        Debit      Credit

Cash                      $900

June 30:

Utilities Expense

Account Titles        Debit      Credit

Cash                     $350

Salaries Expense

Account Titles        Debit      Credit

Cash                     $2,500

Explanation:

a) Data and Calculations:

June Transactions:

June 1:

Cash $12,000 Common Stock $12,000

June 2:

Rent Expense $950 Cash $950

June 3:

Office Equipment $6,400 Accounts Payable $6,400

June 6:

Art Materials & Other Suppliers $3,800 Cash $1,800 Accounts Payable $2,000

June 11:

Accounts Receivable $4,700 Service Revenue $4,700

June 17:

Cash $3,250 Accounts Receivable $3,250

June 19:

Accounts Payable $3,000 Cash $3,000

June 25:

Dividends $900 Cash $900

June 30:

Utilities Expense $350

Salaries Expense $2,500

Cash $2,850

5 0
3 years ago
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