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3 years ago

How does a firm generally respond to higher demand for its goods?

Business

2 answers:

horrorfan [7]3 years ago

5 0

I think it would be A

Ronch [10]3 years ago

3 0

Answer:

B. raise prices.

Explanation:

When the demand increase, while the firm is not able to increase the production, they raise the prices, because there will be buyers willing to pay more. That is the classical equilibrium of the market, offer - demand: increases in demand push the prices upward, increasing in offer pushes the prices downward.

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Present Value of Bonds Payable; Premium Moss Co. issued $100,000 of four-year, 12% bonds with interest payable semiannually, at

alex41 [277]

Solution and Explanation:

Face Value of Bonds = $100,000

Annual Coupon Rate = 12.00% , Semi-annual Coupon Rate = 6.00%

Semiannual Coupon = 6.00% * $100,000 , Semiannual Coupon = $6,000

Annual Interest Rate = 9.00% , Semiannual Interest Rate = 4.50%

Time to Maturity = 5 years , Semiannual Period = 10

Present Value of Bonds

$=\$ 6,000 * \text { PVA of } \$ 1(4.50 \%, 10)+\$ 100,000 * \text { PV of } \$ 1(4.50 \%, 10)$

Present Value of Bonds = $\$ 6,000 * 7.91272+\$ 100,000 * 0.64393$

Present Value of Bonds = $111,869

So, present value of the bonds payable is $111,869

5 0

3 years ago

On October 5, Cullumber Company buys merchandise on account from Marin Company. The selling price of the goods is $6,650, and th

andreev551 [17]

Answer:

October 5 entries

Debit Accounts receivable $6,650

Credit Sales Revenue $6,650

To record sales

Debit Cost of goods sold $3,010

Credit Inventory $3,010

To record the cost of sales

October 8 entries

Debit Sales return $840

Credit Accounts receivable $840

To record sales reversal due to sales return

Debit Inventory $430

Credit Cost of goods sold $430

Explanation:

The perpetual inventory system is the one that ensures that the book balance for inventory is adjusted for every purchase, sale or return of inventory.

When inventory is sold on account, the entries required are debit accounts receivable and credit revenue then Debit cost of goods sold and credit inventory.

8 0

3 years ago

Adding Erik Olin Wright’s concept of contradictory class locations to the Marxist concept of capitalists versus the proletariat,

bija089 [108]

Answer:

a salaried paralegal assistant at a law firm

Correct label: proletariat the head of printing press operations at a major newspaper
Correct label: contradictory the owner of a large franchised restaurant
Correct label: capitalist a freelance graphic artist
Correct label: contradictory

4 0

3 years ago

Which of the following The holding-period return (HPR) on a share of stock is equal to(s) the level of real interest rates? I) T

____ [38]

Answer: D. I, II, and III.

Explanation:

The demand for investment funds determines the demand for loanable funds and when this is higher than the supply, the rate increases. The reverse it true. It therefore affects real interest rates.

The savings of households and business firms are the source of loanable funds so if these are high relative to demand, the rate will decrease. The reverse is true.

Government demand for funds will increase interest rates as the supply will decrease when the government borrows massively. The reverse is true.

All three therefore impart real interest rates.

7 0

3 years ago

HURRY!!!!!!!!! Thank you

Mekhanik [1.2K]

Answer:

d i think

Explanation:

sos

4 0

3 years ago