Answer:
Will increase
Explanation:
Substitutes are the goods which have high elastic demand or positive cross elasticity of demand. An increase in price substantially affects the demand for a substitute good. For example, if tea and coffee are substitutes, an increase in the price of coffee will increase the demand for tea and the overall surplus in the team market.
Answer:
Consider the following calculations
Explanation:
- PMT(Interest_Rate/Num_Pmt_Per_Year,Loan_Years*Num_Pmt_Per_Year,Loan_Amount)
- If you input these values on a financial calculator, PMT = 2011.56
- Balance of the loan at the end of 13 years = 209798.54
- Interest paid in the 6th year = 21464.51
- 224th Payment Principal = 722.70
Trade discounts are offered to customers with high volume
orders in a specified date of payment. In the problem given, the estimated
price of the jacket is $50 but with 40% discount within 10 days of purchase.
Therefore, $50 * 40% = 20. The manufacturer will receive $30 which is the price
less discount.
Answer: a. Demographic and Economic .
Explanation:
In Mayor's clinic analysis of the future, it was stated that both the economic and demographic trends looked bleak.
Answer:
a. The $25,000 is deductible as a current expense.
b. The $25,000 is still deductible as a current expense.
Explanation:
a.They open a bagel shop in the city?
The $25,000 spent on travel, surveys, and financial forecasts will be treated as an an ordinary and necessary business expense. The reason is that it is spent to carry out an investigation necessary for expanding their already existing business. Therefore, the $25,000 is deductible as a current expense.
b. They decide not to open a bagel shop in the city?
It does not matter whether they open the bagel shop in the city or not. The $25,000 spent on investigation will still be treated as an an ordinary and necessary business expense, since it is spent to expand existing active business. The $25,000 is still deductible as a current expense.
