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Kisachek [45]
3 years ago
7

Because consumers are generally more sensitive to price increases than to price decreases, it is easier to lose current customer

s with a price increase than it is to gain new customers with a price decrease. - true or false
Business
1 answer:
Illusion [34]3 years ago
7 0

Answer:

True

Explanation:

When the price increases, more people will be unwilling to buy the product. However, simply lowering the price will not necessarily gain a large number of new customers.

You might be interested in
The graph shows excess demand. A graph titled Excess supply has quantity on the x-axis and price on the y-axis. A line with posi
Anton [14]

Answer:the firm should increase price

Explanation:

From the question there is a shortage i.e Demand is greater than Supply, the firm should increase the price of the product which would induce suppliers to increase their supply.

The increase in price would lead to a movement along the demand curve with would in turn correct the disequilibrium.

4 0
4 years ago
Read 2 more answers
Ace Company borrowed $10,000 from Fair Rates Bank by signing a two-year note payable. Ace's operating cycle is 14 months. This n
salantis [7]

Answer:

The note will be stated as a long term liability on the balance sheet of the company.

Explanation:

Long term liability is the financial responsibility of the business which is due for more than a year in the future. The present portion of the long term debt which is separately listed in order to provide a more accurate view of the liquidity and the ability of the company to pay the current liabilities as they become due.

Company borrowed $10,000 from bank by singing a note of 2 year. This would be considered as the long term liability.

6 0
3 years ago
Arnez Company’s annual accounting period ends on December 31, 2019. The following information concerns the adjusting entries to
g100num [7]

Answer:

supplies expense 13069 debit

             supplies          13069 credit

insurance expense 12,844 debit

          prepaid insurance  12,844 credit

depreciation expense  16,375 debit

        acc dep- building       16,375 credit

rent receivable    2,000 debit

   rent revenue              2,000 credit

unearned revenue  3,624 debit

   rent revenue             3,624 credit

Explanation:

<u>cosumption of supplies:</u>

beginning   3,075

purchases  12,700

ending        (2,706)

expense   13,069

<u>insurance:</u>

April 1st 24 months  10,824

April 1st 36 months    9,576

August 1st 12 months 8,400

<u>expired insurance:</u>

10,824 x 8/24 =    7,216

9,576 x  8/36 =   2,128

8,400 x  5/12 = <u>  3,500  </u>

total                    12,844‬

for depreicaiton we recognize the amount per year

the rent earned is only Decemeber so we recognize for that amount

then we have the other tenant which pais 5 months, 2 has expired so we accrued for that:

1,812 x 2 = 3,624

7 0
4 years ago
"An OTC equity trader has received a large influx of sell orders for ABC stock and, to fill them, has taken an extremely large l
ANTONII [103]

Answer:

decrease the bid price in the OTCBB

Explanation:

Given that, the dealer's Bid price is too high, this is believed to be the reason behind the sellers trying to make orders. Hence, to reduce the orders, the dealer will lower the Bid price.

Hence, in this case, the best answer or alternative to be considered is that, the dealer would most likely decrease the bid price in the OTCBB, this is specifically to discourage the sellers.

7 0
4 years ago
At nick's bakery, the cost to make homemade chocolate cake is $3 per cake. as a result of selling three cakes, nick experiences
Kazeer [188]
Producer surplus is the difference between the amount a producer of a good receives and the minimum amount the producer is willing to accept for the good.

Cost to make 1 cake= $3

FIND SURPLUS PER CAKE
Surplus divided by 3 cakes
$19.50 ÷ 3= $6.50 surplus per cake

SALE PRICE OF CAKES
$3 cost + $6.50 surplus= $9.50

ANSWER: He must be selling his cakes for $9.50.

Hope this helps! :)
3 0
3 years ago
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