I believe the correct answer is A. The model of aggregate demand and aggregate supply explains the relationship between the price and quantity of a particular good. It is a macroeconomic model explaining the correlation of the price with the output of goods.
Answer:
Journal Entries
Date Account Titles and Explanation Debit Credit
April 30 Salaries expenses $4,800
($12,000/5) * 2
Salaries payable $4,800
(To record the Accrual of salaries expense)
May 30 Salaries Expenses
($12,000/5)*3 $7,200
Salaries payable $4,800
Cash $12,000
(To record the payment of salaries expenses)
If the price of a product falls to what is considered a bargain price, a shortage would occur.
A shortage occurs when the quantity demanded exceeds the quantity supplied. A shortage occurs when price is below the equilibrium price.
A surplus is when the quantity supplied exceeds the quantity demanded. A surplus occurs when price is above the equilibrium price.
When the price of a good falls to what is considered a bargain price by consumers, it means that the price of the good is below the equilibrium price.
When the price of a good is below equilibrium, quantity supplied would fall and the quantity demanded would exceed supply. As a result, there would be a shortage.
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Answer:
The company's net income will decrease by $88380
Explanation:
we increase sales by 10% which results in 10% increase in divisions profit of $1620
after that we set off the increase in the profits lost as it is less than it ($90,000 - $ 1620) =$88380