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DiKsa [7]
3 years ago
6

In year 1 the average price of X is $10, and in year 2 the average price of X is $23. Still, consumers buy more units of X in ye

ar 2 than in year 1. It follows that
Business
1 answer:
zysi [14]3 years ago
8 0

Answer:

Demand for good x could be higher in year 2 than year 1

Income may have been higher in year 2 than year 1

Explanation:

In the given scenario there was an average price of product as $10. To calculate average cost it is total sales revenue divided by number of units sold.

In year 2 the average price is $23. This means that for each unit sold in year 2 the price was $23 an increase of $13 from year 1.

For this to have happened first there could have been higher income of the consumer in year 2 and they will have more to spend on the product at a higher price.

There will also need to be an increase in the demand for the good this will increase units sold and also price will go up.

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Prepare journal entries to record each of the following transactions of a merchandising company. The company uses a perpetual in
k0ka [10]

Answer:

Nov 05

Dr Merchandise inventory 9,000

Cr Accounts payable 9,000

Nov 07

Dr Accounts payable 350

Cr Merchandise inventory 350

Nov 15

Dr Accounts payable 8,650

Cr Merchandise inventory 346

Cr Cash 8,304

Explanation:

Preparation of Journal entries

Based on the information given we were told that on Nov. 5 the company Purchased 900 units of product at the amount of $10 per unit which means that the Journal entry will be:

Nov 05

Dr Merchandise inventory 9,000

Cr Accounts payable 9,000

(900 units *$10 per units)

Based on the information given we were told that the company on Nov. 7 Returned 35 defective units from the the month of November 5 purchase in which they received full credit which means that the Journal entry will be:

Nov 07

Dr Accounts payable 350

Cr Merchandise inventory 350

(35*$10 per units)

Based on the information given we were told that the company on Nov. 15 Paid the amount of money due from the month of November 5 purchase in which they minus the return on November 7 which means that the Journal entry will be:

Nov 15

Dr Accounts payable 8,650

(9,000- 350)

Cr Merchandise inventory 346

(4%*8,650)

Cr Cash 8,304

(8,650-346)

8 0
3 years ago
The marginal utility curve is: A) upsloping because of increasing marginal opportunity costs. B) upsloping because successive un
kotykmax [81]

Answer:

D) downsloping because successive units of a specific product yield less and less extra utility.

Explanation:

The marginal utility curve is downsloping because successive units of a specific product yield less and less extra utility or benefits.

It gives the relationship between the utility derived from the consumption of an additional unit of a good and the quantity of the good consumed.

8 0
2 years ago
Which of the following terms refers to a promise made to lenders by a borrower?
Natali5045456 [20]

Answer:

Covenant.

Explanation:

A covenant in business context refers to a formal debt agreement between a lender and a company that specific actions will or will not be undertaken.

4 0
2 years ago
Browning's has a debt-equity ratio of .47. what is the equity multiplier?
jek_recluse [69]

A. 1.47

Have a good night


4 0
2 years ago
An import quota seeks to guarantee domestic industries ______.
lyudmila [28]

Answer:

a. will have access to experts who can decide international trade disputes.

Explanation:

7 0
2 years ago
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