Answer:
C. increase equilibrium price and quantity
Explanation:
The demand for substitute goods is inversely related. An increase in the price of a substitute good will cause its demand to reduce. The demand for the other product will increase as customers will prefer the cheaper product.
In the graphs showing both the supply and demand curve, the equilibrium point is the prevailing market rate. As per the law of supply and demand, an increase in demand results in increased prices. High demand means many buyers are chasing few goods. Suppliers will have to supply more but a higher price to meet the new demand. An increase in demand causes the equilibrium price to shift upward to reflect the new high price.
Answer:
$13,740
Explanation:
In the perpetual method of inventory valuation, the inventory balance is updated constantly after each transaction. In this problem, the initial balance is $36,000, purchases of new inventory will increase the balance, while returns, discounts and goods sold will decrease the balance. If the ending inventory is $29,500, the cost of goods sold (C) is determined as:
The cost of goods sold was $13,740.
Answer:
a. $804,000
Explanation:
Preparation of Worth Company's cost of goods sold for the year
Cost of goods manufactured $816,000
Add Beginning finished goods inventory $252,000
Less Ending finished goods inventory ($264,000)
Cost of goods sold $804,000
Therefore Worth Company's cost of goods sold for the year is: $804,000
Answer:
Check the explanation
Explanation:
Using the constant growth model which can be applied even if the dividends to be paid are declining by a constant or stable percentage, you just have to make sure that the negative growth is recognized. So, the price of the stock as at today will be calculated like:
P 0 = D 0 (1 + g ) / ( R – g )
P 0 = $11.40(1 – 0.0475) / [(0.08 – (–0.0475)]
P 0 = $85.16