It is to be noted that the demand for sandwiches and ice cream cones consumed after the price of ice cream cones rises to $2 a piece will both reduce (all things being equal).
<h3>Why would the demand for both items reduce?</h3>
The demand for both goods will both come down because they are complementary or joint demand goods.
A pair of goods are termed "joint demand" when both must or usually is consumed with the other.
Recall that (where all things are equal) demand will decrease as price increases.
Learn more about demand at;
brainly.com/question/1245771
#SPJ11
Answer:
Annual depreciation= $12,970
Explanation:
Giving the following information:
Kansas Enterprises purchased equipment for $72,500 on January 1, 2021. The equipment is expected to have a five-year service life, with a residual value of $7,650 at the end of five years.
To calculate the depreciation expense under the straight-line method, we need to use the following formula:
Annual depreciation= (original cost - salvage value)/estimated life (years)
Annual depreciation= (72,500 - 7,650)/5
Annual depreciation= $12,970
<u>Answer:</u> the buying power of the dollar would: decrease.
<u>Explanation:</u>
Purchasing power means the amount of goods that can be bought with the given unit of money. The value of the dollar decreases when there is an inflation. Inflation reduces money value by raising the prices of the goods and services in the country.
Purchasing power can be compared with the salaries received 50 years ago and current salaries. Though the current salaries have increased the prices of the goods have also increased accordingly. Which can also be termed as increased cost of living.
Answer:
Countries have a comparative advantage in production when they can produce a good or service at a lower opportunity cost than other producers.
