The correct answer is allocates resources efficiently and allows economic freedom.
The market system of economics is one where economic decisions and the pricing of goods and services are guided solely by supply and demand and there is limited to no government interaction in the economy. Because of this, two major virtues of the market system are that it allocates resources efficiently and allows economic freedom.
Answer: a. $56925 ; b. Account payable
Explanation:
a. If Hoffman Company pays the invoice within the discount period, what is the amount of cash required for the payment?
Purchase invoice = $65000
Less: Return = ($7500)
Net Purchase Invoice = $57500
Less: Discount = $57500 × 1% = $575
Cash received = $56925
b. What account is debited by Hoffman Company to record the return?
The account that is debited by Hoffman Company to record the return is the account payable.
Answer:
gain surplus from paying a lower price
Explanation:
An effective price ceiling will cause consumers to "gain surplus from paying a lower price."
This is based on the idea that an effective price ceiling usually leads to prices being below the equilibrium price or equates to a lower price.
At this point, the buyers demand more of the products, while the sellers have a lower incentive to produce more. And therefore, the quantity demanded will exceed the quantity supplied.
Hence, consumers gain excess (more demands) by paying a lower price.
Answer:
$1100
Explanation:
Compound Interest is a multiplying effect interest , in which interest for each successive period is calculated on (Principal + Interest) of each preceeding period .
Formula : A = P(1+r/n) power 'nt .
r = Interest rate , t = time , n = compound in time 't' , P = Principal
A = 1000 (1+10/1) power'(1X1) = 1000 X 11 power 1' = 1000 X 11 = 1100
Within the discount period, acorn company returns $500 of damaged merchandise and a check for $3,450 to settle the account
Using this formula
Check amount=(Merchandise sold- Merchandise return)- [(Merchandise sold- Merchandise return)× Discount]
Where:
Merchandise sold=$4,000
Merchandise return=$500
Discount=2%
Let plug in the formula
Check amount=($4,000-$500)-[($4,000-$500)×2%]
Check amount=$3,500-($3,500×2%)
Check amount=$3,500-$70
Check amount=$3,430
Inconclusion within the discount period, acorn company returns $500 of damaged merchandise and a check for $3,450 to settle the account.
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