Answer:
A price floor set above the equilibrium price will result in a surplus of supply.
Explanation.
An equilibrium price refers to the price at which demand for a service or product is equivalent to the quantity of the product or service supplied in the market.
Setting a price floor above the equilibrium price essentially means that the set prices will be higher than what demand is willing to pay for the product or service. Demand will therefore purchase fewer quantity of the product offered by supply at the prevailing price than they would have at equilibrium price.
Since the price floor will raise the product price to considerably higher than the equilibrium price, supply will be willing to provide higher volumes of the product at the prevailing price than at equilibrium price.
This will lead to a mismatch in the market between supply and demand resulting into a surplus.
Answer:
Offshoring
The answer is offshoring because people do work for companies that are in other countires or states because they are probably a proffesional at what they are doing.
Answer:
20%
Explanation:
Data provided
Currently selling per share = $30
Cost of Microsoft after selling = $27
Margin percentage = 50%
The calculation of rate of return is shown below:-
Rate of return = (Currently selling per share - Cost of Microsoft after selling) ÷ Margin percentage × 100
= ($30 - $27) ÷ 50% × 30
= $3 ÷ 15
= 0.20
or
20%
Therefore for calculating the rate of return we simply applied the above formula.
Answer:
a. 10 times
Explanation:
The computation of price-earnings ratio is shown below:-
Earning per share = Net income ÷ Weighted average shares outstanding
= $2,000,000 ÷ 400,000
= 5
Price earning per share = Market price per share ÷ Earning per share
= $50 ÷ 5
= 10 times
Therefore for computing the price earning per share we simply applied the above formula.
The bad debts expense signifies the straight write off of
the bad accounts which is the $20,000 along with an increase in the allowance which
is an approximation of the bad accounts to be written off in the future which
is the $3,000. The growth in the allowance account cannot be subtracted.
