1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
mixer [17]
3 years ago
15

Why would a free market never operate at a quantity greater than the equilibrium quantity? Hint: What would be required for a tr

ansaction to occur at that quantity?
Business
1 answer:
Volgvan3 years ago
3 0

Answer:

This is because in a free market, the prices of goods and services are determined by market forces, and the price mechanism will always keep the market at equilibrium.

Explanation:

The free market is a market without government intervention, equilibrium price and quantity are determined by the interaction of the market forces, also called price mechanism , which Adams Smith referred to as the invisible hands in the market.

The free market cannot operate outside the equilibrium because, the market forces will always keep the market towards equilibrium. Even if equilibrium is distorted, as a result of any shock, the market forces will bring the market towards equilibrium all things being equal, except there is market failure.

a free market is a market in which prices of goods and services are set by demand and supply and are allowed to reach their point of equilibrium without government intervention

You might be interested in
Southwest Pediatrics has the following balances on December 31, 2021, before any adjustment: Accounts Receivable = $121,000; All
kogti [31]

Answer:

Bad debt expense  $ 26,300

Allowance for Uncollectible Accounts   $ 26,300

Explanation:

Initial Balance  

Accounts Receivable  $ 121,000

Allowance for Uncollectible Accounts   $ 2,100 - Debit

Bad Debts Expense =  20% / Accounts Receivable $ 24,200

Adjusting Entry

Bad debt expense  $ 26,300

Allowance for Uncollectible Accounts   $ 26,300

Final Balance  

Accounts Receivable  $ 121,000

Allowance for Uncollectible Accounts   $ 24,200 - Credit

Accounts Uncollectible are those credit that the company give and there are not chances of been collected.

When the customers buy products on credits but then the company can't collect the debt, then it's necessary to write off the unpaid bill as uncollectible

One way it's to write-off directly the bad debts at the moment decided that the credit are uncollectible, the total amount it's reported as bad debt expenses which affect negativly the income statement and the accounts receivable are reduce in the same amount, less assets.

The other way it's to determine a percentage of total amount of accounts receivables as uncollectible, exist many ways to analize the accounts receivable and figure the value of uncollectible.

When the company have the percentage of uncollectible accounts the journal entry required is Bad Expenses (debit) with Allowance for Uncollectible Accounts (credit)

At the moment of the write-off as the expenses were before recognized we only use the Allowance for Uncollectible Accounts (Debit) with Accounts Receivable (Credit), with this we are recognizing the uncollectible credit of the company.

6 0
3 years ago
Calculate the ROI dollar amount and percentage for these example investments. a. You invest $50 in a government bond that says y
Naily [24]

Answer:

a. ROI Dollar Amount $4; ROI percentage = 8%.

b.ROI Dollar Amount $15; ROI percentage = 15%.


a. We have:

Initial investment            $50

Amount at year end       $54

ROI Dollar Amount         54 -50 = 4

ROI Percentage              \mathbf{ \frac{4}{50} * 100 = 8%}

b.

Initial investment            $100

Amount at year end       $115

ROI Dollar Amount         115 -100 = 15

ROI Percentage              \mathbf{ \frac{15}{100} * 100 = 15%}

8 0
3 years ago
Milani, inc., acquired 10 percent of seida corporation on january 1, 2017, for $190,000 and appropriately accounted for the inve
Natalija [7]

The 2018 journal entries for Milani<span> related to its investment in </span>Seida<span> are its share in net income and share in dividends. The investment in considered as investment in associate since there is already the significant influence in </span>Seida. These are the journal entries: 

 

<span>Investment in </span>Seida                                                             12,0000 

<span>       Share in net income of </span>Seida<span> ($30,000 x 40%)                            12,000</span> 

               #

Cash ($110,000 x 40%)                    44,000 

<span>        Investment in </span>Seida                                   44,000<span> </span>

<span>               #</span>

6 0
3 years ago
Deere &amp; Company is a global manufacturer and distributor of agricultural, construction, and forestry equipment. The company
barxatty [35]

Answer:

Days in Inventory = 63 days

Explanation:

We know,

Days in Inventory = 365 days ÷ Inventory Turnover

Given,

Inventory turnover = Cost of goods sold ÷ Average Inventory

Inventory turnover = 16,936 ÷ [( $2,410 + 3,430) ÷ 2]

Inventory turnover = 16,936 ÷ (5,840 ÷ 2)

Inventory turnover = 16,936 ÷ 2,920

Inventory turnover = 5.8

Putting the values into the formula, we can get

Days in Inventory = 365 days ÷ Inventory Turnover

Days in Inventory = 365 days ÷ 5.8

Days in Inventory = 63 days

3 0
3 years ago
You have a rich aunt who wants to give you money. She offers you two choices: Choice 1: You receive $100 starting today once a y
ValentinkaMS [17]

Answer:

Choice 1 is more profitable.

Explanation:

Giving the following information:

Choice 1:

You receive $100 starting today once a year every year for the rest of eternity.

Choice 2:

You receive $200 today and then $50 once a year starting next year for all of eternity.

<u>I will assume an interest rate of 8%</u>

The first option and second option are a perpetual annuity. To calculate the present value, we need to use the following formula:

Choice 1:

PV= Cf/i

Cf= 100

i=0.08

PV= 100/0.08= $1,250

Choice 2:

PV= 50 + 50/0.08= $825

Choice 1 is more profitable.

5 0
3 years ago
Other questions:
  • You have a portfolio that is equally invested in Stock F with a beta of 1.08, Stock G with a beta of 1.45, and the market. What
    15·1 answer
  • Q: What determines the balance of production and consumption?
    11·1 answer
  • In​ 2008, as a financial crisis began to unfold in the United​ States, the FDIC raised the limit on insured losses to bank depos
    6·1 answer
  • True or false
    15·1 answer
  • When you ____________ you spend money on something with the expectation that it will return a greater value in the future.
    9·2 answers
  • Office Depot has instituted the Office Depot Advantage, a program in which a customer who spends a minimum of $200 up to $299 in
    10·1 answer
  • An individual taxpayer is selling her principal residence, which she has owned for ten years and lived in for nine years. What s
    6·1 answer
  • Inventory items with a cost of $3090 were excluded from ending inventory. These goods were in transit from Flores company to Bar
    9·1 answer
  • For the backpack buyer, note the importance of each of the five main characteristics under PREFERENCES and consider each in term
    10·1 answer
  • At the trough of the business cycle, cyclical unemployment is _____ and the actual unemployment rate _____ the natural rate of u
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!