Answer:
The correct answer is option (c).
Explanation:
Equilibrium price occurs at the intersection of the demand and supply curves. That is, a particular quantity that both the supplier and the buyer are willing to exchange at a particular price.
At any price below the equilibrium price, quantity demanded would be more than the quantity supply, so this scenario creates a shortage (excess demand), so producers would be willing to sell the limited quantity at a higher price, preferably at the equilibrium price.
At any price above the equilibrium price, the quantity supply would be more than the quantity demanded, so there would be a surplus (excess supply) in the market. Producers would be willing to collect a lower price, preferably the equilibrium price.
Answer:
The answer is: Probable and the amount of the loss can be reasonably estimated.
Explanation:
Losses should be recorded as soon as possible (conservatism principle) as long as they are probable and can be reasonably estimated. A loss doesn't have to occur to be recorded, that is why they are recorded as contingency losses. If the company finds it probable that a loss will happen but can't estimate it, then it can't record it as a contingency loss.
Question Completion:
Production outputs
Luxland Leanderland
Chips 10 4
Pretzels 10 8
Total output 20 12
Answer:
Assuming that Luxland and Leanderland specialize and trade in a way that is advantageous for both of them, the number of pretzels that Leanderland can produce will be 16.
Explanation:
a) Data and Calculations:
Specialization Output:
Luxland Leanderland
Chips 20 0
Pretzels 0 16
Total output 20 16
b) While it is acknowledged that Luxland has absolute advantage in the production of both chips and pretzels when compared to Leanderland, the total output for both economies, without specialization, remains 32 units (of both chips and pretzels). When they specialize, Leanderland's output increases to 16 units from 12. This results in total output of 36 units instead of 32 for both economies.
Answer: considered to be an offer to buy made by the agent
Explanation:
An offer to buy simply means a proposal made by a buyer to buy an asset, and this becomes legally enforceable once the person who intends to buy the asset accepts the offer made by the seller.
In this case, the agent has contacted the existing client to know if he is interested in selling these shares and once the seller agrees, the shares will be sold at an agreed price.