If the demand for a good falls by less than the supply of the good rises, then the good’s equilibrium price will fall and its equilibrium quantity will rise.
According to the law of demand indicates that as price increases, consumers are willing and able to purchase less so the quantity demanded will fall and cause the downward sloping demand curve. So when price falls, consumers are willing and able to purchase more.
Answer:
True
Explanation:
Space brokers can be considered a primitive type of advertising agent. Space brokers bought space in newspapers in bulk, and therefore received a discount. They assumed the risk of not being able to sell the spaces and lose money while the newspapers benefited from sure sales. When the space brokers sold the space to their clients, they could charge them the normal newspaper rate (without discount) and they would still make money. This is similar to modern day advertising agencies that collect fees from media companies for placing ads.
Answer:
D) $8,040
Explanation:
<u>Credit Sales Method:</u>
Bad Debt Losses = 3% of Credit Sales
Bad Debt Losses = 0.03 x $588,000
Bad Debt Losses = $17,640
<u>Adjusted balance in the Allowance for Doubtful Accounts:</u>
Bad Debt Losses - (uncollectible accounts receivable - Allowance for Doubtful Accounts)
$17,640 - ($24,000 - $14,400)
$17,640 - $9,600
$8,040
Answer:
Franchising
Explanation:
In Franchising, a company who already has a successfully established brand give other people with the ability to open new branch by using that brand.
Example for this would be McDonald. McDonald operate under a franchising system, in which a person who have enough capital to provide building can pay a certain amount money to McDonald in exchange for permission to use its brand.
In most franchising system, the Franchiser usually impose a strict regulation regarding the format of the business. They do this in order to maintain the reputation of the brand.
