Answer: Quantity of ice skates demanded will fall
Explanation:
When ice skating becomes less popular, the demand for ice skates in the U.S market will decline. Since, this is a change in preference and not in price of ice skates, the demand curve will shift to the right (Change in demand (shift) not change in quantity demanded(movement along the same demand curve).
So, the demand curve for ice skates will shift to the left leading to a fall in the price of ice skates and the quantity of ice skates demanded.
Quantity of ice skates demanded will fall, but it is due to the leftward shift in the demand curve.
Answer:
The transactions will be recorded as follows;
Explanation:
August 6.
Inventory(78*240)*99% Dr.$18,533
Accounts Payable-Game Girl Cr.$18,533
August 7.
Inventory Dr.$440
Bank Cr.$440
Aug 10.
Accounts Payable-Game Girl (8*240)*99% Dr.$1,904
Inventory Cr.$1,904
August 14.
Accounts Payable($18,533-$1,904) Dr.$16,632
Bank Cr.$16,632
August 23.
Account Receivable (58*260) Dr.$15,080
Sales Revenue Cr.$15,080
Cost of Goods Sold Dr.$14,145
Inventory Cr.$14,145
Please note that cash discount's net method is used for sake of recording
Answer:
C. optimal capital labor ratio remains the same
Explanation:
One pilot for each plane implies A = B
Let cost be C
So, isocost line is xA + rB = C
So, xA + yA = C (as L = K)
So, (x+y)A = C
So, A = C/(x+y) =B
Optimal capital labor ratio = B/A = 1 as B =A
Now, wage rate increases to x'
So, isocost line is x'A + yB = C
So, x'A + yA = C (as A = B)
So, (x'+y)A = C
So, A = C/(x'+y) = B
New optimal capital labor ratio =B/A = 1 as B = A
Thus, optimal capital labor ratio remains same because capital (planes) and labor (pilots) are used in fixed proportion.
Thus the answer is
C. optimal capital labor ratio remains the same
Philadelphia, Pennsylvania