Answer:
1. Technical improvements cause production costs to decline, which causes supply to increase and prices to decrease. 
2. Decreased unemployment causes consumer incomes to increase which causes demand to increase and hence price to increase.
Explanation:
Demand refers to a consumer's desire to purchase a particular good or service at a given time for a specific price. Supply on the other hand, is the willingness of a producer to produce a particular good or service at a given time for specific price.
1. Production cost is a factor that influences supply. For example, cost of labor or raw material cost. When production costs fall, more products can be produced at a lesser cost. Hence'
-  The supply curve shifts right from S1 to S2. 
- This causes quantity supplied to increase from QS1 to QS2 
- And price to fall from P2 to P1. Please refer Diagram 1 in attachment.
2. When unemployment decreases, it means that more people are working in the economy and hence their incomes are also higher. This means there is a higher purchasing power and also higher demand for products. Hence,
- The demand curve shifts from D1 to D2. 
- This causes quantity demanded to increase from QD1 to QD2 
- And price to increase from P1 to P2.  Please refer Diagram 2 in attachment.
 
        
             
        
        
        
Answer:
D) Todd should include the $500 in 2020 gross income in accordance with the tax benefit rule.
Explanation:
Since Todd is a cash basis taxpayer, he included the $1,500 insurance premium in his 2019 tax return. Cash basis taxpayer report revenues or expenses when the cash is received or paid, not when the service is provided. 
Since he received a $500 refund in 2020, he should include it in his 2020 tax return. As a cash basis taxpayer, any money received is considered income. 
 
        
             
        
        
        
<span>Year Cash Flow
0 -$46,400 
1 18,000 
2 33,530 
3 4,600</span>
<span>NPV = -$46,400 + $18,000 / (1 + 0.09) + $33,530 / (1 + 0.09)2 + $4,600 / (1 + 0.09)3 = 
</span><span>-$1,574.41</span>
 
        
        
        
Answer:
c. $900
Explanation:
The computation of the earnings before taxes (EBT) is shown below:
= Sales - operating costs other than depreciation - depreciation expense - outstanding bonds × interest rate
= $10,000 - $7,250 - $1,250 - $8,000 × 7.5%
= $10,000 - $7,250 - $1,250 - $600
= $900
We ignored the state income tax rate of 25% and the rest of the items would be taken for the computation part