All categories

4 years ago

When supply and demand for a product increase simultaneously, it means that

Business

1 answer:

Grace [21]4 years ago

8 0

Answer:

b. cannot predict equilibrium price but know that equilibrium quantity will increase.

Explanation:

The options to this question wasn't provided. Here are the options:

a. cannot predict the change in either the equilibrium quantity or equilibrium price.

b. cannot predict equilibrium price but know that equilibrium quantity will increase.

c. predict, that both equilibrium price and quantity will increase.

d. predict, that both equilibrium price and quantity will decrease.

When demand increases, the demand curve shifts to the right. Quanitity demanded increases and price increases.

While when supply increases, the quantity supplied increases and price falls.

The combined effect would be an increase in equilibrium quanitity and an indeterminate effect on price.

Please check the attached image for a graphical illustration.

I hope my answer helps you

You might be interested in

If aggregate supply is vertical, then which of the following statements must be true?

never [62]

Answer: A. Aggregate demand does not affect the quantity of output.

Explanation: Aggregate supply curve is perfectly vertical in a long run, Economist believed that the changes in aggregate demand only caused a temporal change in an economy output

Aggregate supply in a short run, the quantity supplies increase as price rise.

Aggregate demand does not affect the quantity of output If the aggregate supply is vertical.

6 0

3 years ago

Analysis of Accounts Receivable and Allowance for Doubtful Accounts Steelcase, Inc. reported the following amounts in its 2014 a

Naddika [18.5K]

Answer:

b. Gross Receivable = Net receivable +Allowance

2014 = $306.8 + $13 = $319.80

2013 = $287.3 + $14.5 = $301.8

Allowance as a % of Gross receivable = Allowance / Gross receivable

2014 = $13/319.80 = 0.041 = 4.1%

2013 = $14.5/301.8 = 0.015 = 1.5%

c. Average Net Accounts receivable = (Accounts receivable, net 2014 + Accounts receivable, net 2013) / 2 = ($306.8 + $287.3] / 2 = $297.05

Receivable Turnover = Net credit sales / Average Net Accounts receivable

Receivable Turnover = $2,989 / $297.05

Receivable Turnover = 10.06 Times

d) Cash received in 2014 = Beginning Gross receivables + Net sales - Ending Gross receivables-Adjustment in allowance (Write-off 2014)

Cash received in 2014 = $301.8 + $2,989 - $319.8 - $4.3

Cash received in 2014 = $2,966.7

Increase in customer deposits = $16 - 13.5 = $2.5

Total Cash received from customers in 2014 = Cash received in 2014 + Increase in customer deposits

Total Cash received from customers in 2014 = $2,966.7 + $2.5

Total Cash received from customers in 2014 = $2969.20

6 0

3 years ago

Buatlah Jurnal Penyesuaian dan Jurnal Pembalik dari:

mash [69]

Answer:

I don't understand

Explanation:

English?

8 0

3 years ago

After evaluating Null Company’s manufacturing process, management decides to establish standards of 2 hours of direct labor per

Arisa [49]

Answer:

Explanation:

The computation is shown below:

For October month:

The computation of the direct labor price variance is shown below:

= Actual Hours × (Actual rate - standard rate)

= 11,500 × ($180,550 ÷ 11,500 hours - $15.50 per hour)

= 11,500 × ($15.70 - $15.50)

= $2,300 unfavorable

The computation of the direct labor efficiency variance is shown below:

= Standard Rate × (Actual hours - Standard hours)

= $15.50 per hour × (11,500 hours - 6,100 units × 2 hours)

= $15.50 per hour × 700 hours

= $10,850 favorable

The computation of the total direct labor cost variance is shown below:

= Direct labor rate variance + direct labor efficiency variance

= $2,300 unfavorable + $10,850 favorable

= $8,550 favorable

For November month:

The computation of the direct labor price variance is shown below:

= Actual Hours × (Actual rate - standard rate)

= 22,500 × ($355,500 ÷ 22,500 hours - $15.50 per hour)

= 22,500 × ($15.80 - $15.50)

= $6,750 unfavorable

The computation of the direct labor efficiency variance is shown below:

= Standard Rate × (Actual hours - Standard hours)

= $15.50 per hour × (22,500 hours - 6,500 units × 2 hours)

= $15.50 per hour × 9,500 hours

= $147,250 favorable

The computation of the total direct labor cost variance is shown below:

= Direct labor rate variance + direct labor efficiency variance

= $6,750 unfavorable + $147,250 favorable

= $140,500 favorable

3 0

3 years ago

A corporation can earn 7.5% if it invests in municipal bonds. The corporation can also earn 8.40% (before-tax) by investing in p

Lostsunrise [7]

Answer:

A tax rate of 10.71% should make both both indifferent for investors.

Explanation:

the municipal bonds are income-tax free so we should solve for the tax rate which makes both bonds equaly attractive.

0.075 = after-tax rate

0.084 = pre-tax rate

$pre-tax (1- t) = after-tax\\0.084 (1-t) = 0.075\\1 - t = 0.075 \div 0.084\\t = 1 - 0.075 \div 0.084\\t = 0.10714285$

A tax rate of 10.71% should make both both indifferent for investors.

4 0

3 years ago