Answer: Option C
Explanation: Usually the demand for the goods tends to be more elastic in long run rather than the short run. In case of oil, it is not a necessary good for the daily lives of the individuals and one can survive without it and can use alternatives.
Therefore, in the long run it is more elastic as individuals will move to the alternatives of oil if its price remains high.
Hence from the above we can conclude that the correct option is C.
Answer:
Credit balance of $12,000
Explanation:
To calculate the balance of the allowance for doubtful accounts we need to multiply the total accounts receivable times the percentage of estimated bad debts:
$160,000 x 7.5% = $12,000
Since allowance for doubtful accounts is a contra asset account, when it increases it should be credited.
Answer:
C.
Explanation:
The law of demand states that when the price of a good or service increases, the quantity demanded decreases and when the price decreases the quantity demanded increases (other things constant).
Is not option A because it says changes in income and not changes in prices. Is not option B because it says the opposite that the law of demand states: when the muffins price is low, Melissa buys fewer than when the price is high. Is not option D because the law of demand is not directly related with substitute goods. It is option C because when the price is low ($0.25) Dave buys more donuts than when the price is high ($0.50)
Answer:
a. both the money supply increase and the investment tax credit
Explanation:
When the Central Bank of Wiknam increases the money supply, it is known as expansionary monetary policy.
When the Parliament of Wiknam passes a new investment tax credit, it is known as expansionary fiscal policy.
A shift in the aggregate demand curve to the right is when aggreagrate demand increases.
When money supply is increased, disposable income increases, consumption increases and aggregate demand increases.
Investment tax credit reduces the amount paid as tax and therefore increases disposable income, consumption increases and aggregate demand increases.
I hope my answer helps you.
D asking your instructor to assign you a topic
