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3 years ago

When the current price of an item is greater than the item's market clearing price:_________.

Business

1 answer:

irina1246 [14]3 years ago

4 0

Answer:

C) quantity supplied is greater than the quantity demanded.

Explanation:

We need not be confused, the market-clearing price is referring to the equilibrium price. Thus, if the current price is above the market-clearing price (that is, the price at which quantity demanded equals quantity supplied), it means the quantity supplied is greater than the quantity demanded of the item.

For example, at a price of $1 per orange, there's an equal amount in quantity demanded and quantity supplied of orange. However, the price increases to $2 per orange; which makes the current price of an orange greater than the market-clearing price of $1.

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Choose the statement about ITQs that is correct.

melomori [17]

Answer:

D. When ITQs are used, no one has an incentive to cheat and exceed the quota.

Explanation:

As ITQs (individual transferable quotas) were initially created by the government to regulate an above all, social affair, which is related to the share in the total allowable catch of fish (species).

Since some of the fishermen have lower and some have higher marginal costs of "producing" fish, they trade ITQ's between themselves, with those who have high marginal costs selling ITQs to those that have low marginal costs. Also, the marginal private cost now becomes determined by the initial marginal private cost of the fish, plus the price of the ITQ. Then, it becomes known as the marginal social cost.

The equilibrium for the ITQ price is the difference between the marginal social benefit and the marginal cost. With the base marginal private cost becoming the marginal social cost, no one has the incentive to exceed the quota, as that would make the marginal cost go higher than the price, and the marginal profit lower. This notion creates the equality between self-interest and social interest.

4 0

3 years ago

Equipment with an original cost of $75,000 and accumulated depreciation of $20,000 was sold at a loss of $7,000. As a result of

Tcecarenko [31]

Answer:

O increase by $48,000

Explanation:

A loss is made on disposal of an asset when the amount received from the disposal is lower than the carrying amount of the asset. The carrying amount or net book value of an asset is the difference between the cost of the asset and its accumulated depreciation.

Hence

Carrying amount = $75,000 - $20,000

= $55,000

Let the amount received on disposal be K

K - $55,000 = -$7,000

K = $55,000 - $7,000

= $48,000

This is the amount received from the disposal and it represents an increase in cash.

7 0

3 years ago

In July, one of the processing departments at Okamura Corporation had beginning work in process inventory of $26,000 and ending

notsponge [240]

Answer:

Total cost accounted will be $192000

So option (C) will be correct answer

Explanation:

We have given beginning work in process inventory = $26000

Ending work in process inventory = $31000

And cost of units transferred from the department is $161000

We have to find the total cost accounted

Total cost account will be equal to sum of ending process inventory and cost of units transferred out from the department

So total cost accounted = $31000 + $161000 = $192000

So option (C) will be correct answer

7 0

3 years ago

Record adjusting journal entries for each of the following for year ended December 31. Assume no other adjusting entries are mad

elena-s [515]

Answer:

1. Dr Account receivable $20,500

Cr Service revenue $20,500

2. Dr Interest receivable $450

Cr Interest revenue $450

3. Dr Account receivable $1,420

Cr Service revenue $1,420

Explanation:

Preparation of the adjusting journal entries for each of the following for year ended December 31.

Based on the information given the adjusting journal entries for each of the following for year ended December 31 will be :

1. Dr Account receivable $20,500

Cr Service revenue $20,500

(Being to record Accounts Receivable)

2. Dr Interest receivable $450

Cr Interest revenue $450

(Being to record Interest receivable)

3. Dr Account receivable $1,420

Cr Service revenue $1,420

(Being to record Accounts Receivable)

5 0

2 years ago

Refer to standard motor products. when standard motor products’ edwardsville plant decided to give its teams the highest level o

Lynna [10]

Refer to standard motor products. when standard motor products’ edwardsville plant decided to give its teams the highest level of autonomy, it created self-designing teams. A self-designing team is a team that decides who they want to work with, how they want to work together and what they want to work on. This has been shown to create productivity because these workers are happy with the work they are doing and making decisions instead of being just told what to do.

5 0

3 years ago