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shepuryov [24]
3 years ago
6

Suppose the market for gourmet chocolate is in long-run equilibrium, and an economic downturn has reduced consumer discretionary

incomes. Assume chocolate is a normal good, and the chocolate producers have identical cost structures. a. Demand will . b. Profits for chocolate producers in the short run will . c. Chocolate producers will the market. d. The long-run supply curve will .

Business
1 answer:
VashaNatasha [74]3 years ago
8 0

Answer:

a. Decrease

b. Decline

c. Exit

d. No change

Explanation:

The market for gourmet chocolate is in the long-run equilibrium, and an economic downturn has caused the consumer disposable income to fall. Chocolate is a normal good, and the chocolate producers have identical cost structures.

a. This decline in the consumer income will reduce the purchasing power of the consumers. As a result, the demand will decrease. The demand curve will move to the left.

b. This leftward shift in the demand curve will cause the price to decline, As the price falls, the profits earned by the producers will decline as well.

c. In the long run, the firms operate at zero economic profits. So a decline in profits imply that the firms are operating at an economic loss. This will cause the loss incurring firms to exit the market.

d. The long run supply curve will remain the same. It is not affected by change in profits, it changes only with change in the state of technology or availability of resources.

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Midyear on July 31st, the Digby Corporation's balance sheet reported: Total Assets of $205.498 million Total Common Stock of $6.
sergey [27]

Answer:

The value of total liabilities is $155.031 million and option c is the correct answer.

Explanation:

The basic accounting equation states that the total value of assets is always equal to the sum of the total value of liabilities and the total value of equity.

Thus, we can say that,

Total Assets = Total Liabilities + Total Equity

The equity part can contain various components. In the given question it has two components namely Common Stock and retained earnings.

205.498 = Total Liabilities + (6.350 + 44.117)

205.498 = Total Liabilities + 50.467

205.498 -  50.467 = Total Liabilities

Total Liabilities = $155.031

8 0
3 years ago
A sewage treatment revenue bond issue is being underwritten on a negotiated basis. The offering consists of $50,000,000 par valu
Slav-nsk [51]

Answer:

The multiple choices are :

a.$8

b.$20

c.$22

d.$45

The correct option is C.$22

Explanation:

The earnings accruing to the selling group is the selling concession of $22 per $5,000 per bond.

Option A is obviously wrong as there is nothing in the questions that suggest earnings of $8 per bond for the selling group.

Option D is wrong as well because $45 per bond is the spread  which is the extra yield to bondholders when compared to investment in government securities

5 0
3 years ago
Childers Company, which uses a perpetual inventory system, has an established petty cash fund in the amount of $400. The fund wa
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Answer:

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Explanation:

Journal Entry                     Debit    Credit

Merchandise inventory      $62

Delivery charges                 $46

Office supplies                    $30

Miscellaneous expenses    $51

Cash over and short             $100

Cash                                                   $299

Cash to be reimbursed = Minimum cash balance required - Cash balance left

Cash to be reimbursed = $500 - $201

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7 0
3 years ago
ervis accepts all major bank credit cards, including those issued by Northern Bank (NB), which assesses a 4.5% charge on sales f
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Answer:

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Dr Cash ($5,800 - $261) $ $5,539

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Cr Sales $5,800

(5,539+261)

Explanation:

Since Jervis assesses a 4.5% charge on sales for using its card in which On June 28, he had $5,800 in NB Card credit sales this means we have to Debit Cash with $5,539 ($5,800 - $261) and as well Debit Credit card expense with $261 ($5,800 X 4.5%) while we Credit Sales with $5,800 (5,539+261)

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