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victus00 [196]
3 years ago
11

Suppose a price floor on sparkling wine is proposed by the Health Minister of the country of Vinyardia. What will be the likely

effect on the market for sparkling wine in Vinyardia?
Business
1 answer:
Elenna [48]3 years ago
8 0

Answer:

The options for this question are the following:

A. Quantity demanded will decrease, quantity supplied will increase, and a shortage will result.; B. Quantity demanded will increase, quantity supplied will decrease, and a surplus will result.; C. Quantity demanded will decrease, quantity supplied will increase, and a surplus will result; D. Quantity demanded will increase, quantity supplied will decrease, and a shortage will result.

The correct answer is C. Quantity demanded will decrease, quantity supplied will increase, and a surplus will result.

Explanation:

There is a strong correlation between pricing (at prices higher than the equilibrium price) and the creation of excess supply. Following the analysis of supply and demand, if we start from an initial equilibrium situation (where the quantity demanded and supplied are equal) and the authority decides to set a much higher price, the quantity demanded of the product will decrease and, on the other hand, the quantity supplied will increase, so producers will want to sell more than consumers want to buy. The previous problem will be solved if the authority decides to lower the price of the product, since this encourages consumers to buy more and bidders to produce less.

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A note payable was executed by Sterling Inc. to Miami Finance Company. Sterling Inc. used $768,000 of its accounts receivable as
denpristay [2]

Answer:

See all the entries below.

Explanation:

a. Record the entry for Sterling to record the secured borrowing.

The entries will look as follows:

<u>Account Name                                    Debit ($)           Credit ($)    </u>

Cash (768,000 * 85%)                       652,800

  Note Payable                                                              652,800

<em><u>(To record the secured borrowing.)                                                    </u></em>

b. Record the entries for Sterling to record (1) the collections and (2) the payment to Miami for the first month.

The entries will look as follows:

<u>Account Name                                    Debit ($)           Credit ($)      </u>

Cash                                                   504,320

Refund Liability                                    20,480

  Accounts Receivable                                                 524,800

<u><em>(To record collection on receivables for first month.)                         </em></u>

Interest Expense                                     4,480

Note Payable                                      499,840

  Cash                                                                             504,320

<u><em>(To record payment to Miami for the first month.)                               </em></u>

c. Record the entries for Sterling to record (1) the collections for the second month and (2) the final payment to Miami.

The entries will look as follows:

<u>Account Name                                    Debit ($)            Credit ($)     </u>

Cash                                                    238,080

Allowance for Doubtful Debt                  5,120

  Accounts Receivable (w.1)                                          243,200

<u><em>(To record collection on receivables for second month Interest.)     </em></u>

Expense                                                   1,920

Note Payable                                       151,040

  Cash (w.2)                                                                      152,960

<u><em>(To record final payment to Miami.)                                                      </em></u>

Workings:

w.1: Accounts Receivable = Amount of accounts receivable as collateral – Cash received from customer = $768,000 - $524,800 = $243,200

w.2: Cash = Loan - First payment for principal = $652,800 - $499,840 = $152,960

3 0
3 years ago
The nominal interest rate is 6 percent and the real interest rate is 2.5 percent. What is the inflation rate?
Vlad1618 [11]

Answer:

3.5 percent

Explanation:

6 0
2 years ago
A "hazardous chemical" is any chemical which is a physical or health hazard <br> true or false
statuscvo [17]

Answer:

true.

Explanation:

8 0
3 years ago
Read 2 more answers
During the year, Patriot Partners had $245,000 in revenues, $120,000 and expenses, and $40,000 in declared dividends. What was P
Bezzdna [24]

Answer:

Patriots net income for the year = $245,000

Explanation:

Data provided in the question:

Revenue of Patriot Partners during the year = $245,000

Expenses of Patriot Partners during the year = $120,000

Declared dividends by Patriot Partners = $40,000

Now,

The Patriots net income for the year will be

= Revenue of Patriot Partners - Expenses of Patriot Partners

or

Patriots net income for the year = $245,000 - $120,000

or

Patriots net income for the year = $125,000

3 0
3 years ago
Suppose that over one range of​ prices, the absolute value of the price elasticity of demand varies from 15.0 to​ 2.5, and over
Vera_Pavlovna [14]

Answer:

In the first range of prices (with PED 15 - 2.5) as the price of the good or service falls, total revenue should increase. Imagine that a 1% reduction in price will result in a 15% increase in quantity demanded. The same happens when PED = 2.5, since a 1% reduction will increase quantity demanded by 2.5%.

e.g. price = $100, quantity demanded = 100, total revenue = $10,000

  • price falls to $99, quantity demanded increases to 115, total revenue = $11,385
  • price falls to $99, quantity demanded increases to 102.5, total revenue = $10,147.50

On the other range (PED = 1.5 - 0.75) as the price of the good or service falls, at first total revenue will increase but then it will decrease.

e.g. price = $100, quantity demanded = 100, total revenue = $10,000

  • price falls to $99, quantity demanded increases to 101.5, total revenue = $10,048.50
  • price falls to $99, quantity demanded increases to 100.75, total revenue = $9,974.25
5 0
3 years ago
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