Answer: Option A
Explanation: In simple words, substitution effect refers to the economic phenomenon which states that when price of one good rises the demand for the alternative of that particular good also rises. For example - coke and pepsi.
On the other hand, income effect states that when the price of a commodity rises, a number of consumers might find it hard to purchase due to the price exceeding their income power which further results in lower demand.
Hence from the above we can conclude that the correct option is A.
The level of quality of information would eventually exist in the market for lemons assuming there was no way to gain assurance regarding the accuracy of the information would be low only.
In the given scenario we are given that there is no way to reassure ourselves that the information is accurate about the lemons in the existing market.
So we can not be a hundred percent sure that the information regarding the lemons existing in the market is correct.
As a result, if there was no method to verify the authenticity of the information, only low-quality information would eventually be available in the market for lemons.
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Answer:
In 2017
Net Income and Retained Earning are overstated by $100,000
Expenses and Payables are understated by $100,000.
In 2018
Inventory, Net Income and Retained Earning are understated by $57,000
Expenses are overstates by $57,000
Explanation:
Accrued Salaries is Recorded as follow
Dr. Salaries Expense
Cr. Salaries Payament
Non recording of this entry will result in understatement of Expenses and Payables by $100,000 over statement of Net income and retained earning by the same amount.
Treatment of Office supplies of $57,000 as expense will overstate the expenses and understate the the inventory, Net income and Retained Earning.
Unit pricing can be used in various types of contracts to require the buyer to pay the supplier a predetermined amount per unit of service.
Answer: This scenario demonstrates the PERISHABILITY quality of services.
Explanation: A Service Organisation can be defined as an organisation that practice the provision of such a service as economic activity.
Some of the qualities of Services include; variability; perishability; heterogeneity etc.
The perishability quality of service refers to the fact that services cannot be stored, warehoused, or inventoried and, therefore, are perishable.
