Answer:
Date Account Title Debit Credit
June 30 Cash $150
Interest revenue $150
Explanation:
Interest earned is considered to be revenue so it will be credited to the interest revenue account.
Cash will be debited because the interest revenue increased it and assets are debited when they increase.
Answer:
- Paul Donut Franchisee : Perfectly Elastic Supply
- P & G Facial Tissues : Elastic Supply
- Papermate Pens : Inelastic Supply
- Bright Ideas Lightbulbs : Perfectly Inelastic Supply
Explanation:
Price Elasticity of Supply is sellers' quantity supplied response to price change. P(Es) = % change in supply / % change in price.
Supply can be classified by Price Elasticity of Supply, as undermentioned :
- Elastic Supply : P(Es) > 1 ; % change in supply > % change in price
- Inelastic Supply : P(Es) < 1 ; % change in supply < % change in price
- Unitary Elastic : P (Es) = 1 ; % change in supply = % change in price
- Perfectly Elastic Supply : P(Es) = ∞ ; Supply responds infinitely to any slight price change & so prices are constant.
- Perfectly Elastic Supply : P (Es) = 0 ; Supply responds negligibly to massive price change & so quantity supplied is constant
- Paul Donut Franchise : Unlimited Supply at constant price, so supply perfectly elastic
- P & G facial tissues : % change in supply i.e 66% > % change in price i.e 10% , so supply is elastic
- Papermate pens : % change in supply i.e 10 % < % change in price i.e 15% , so supply is inelastic
- Bright Ideas Lightbulbs : % change in supply 15% negligible in relation to 400% price change , so supply is perfectly inelastic
Answer:
C. Government ownership of the major industries.
Explanation:
The government owning the major industries is not a characteristics of market system. The government plays a limited role instead. Government role is to ensure that the markets are open and working. It ensures equal access to information by making sure no one manipulates the markets.
Other characteristics of market system not mentioned in the question are
1. System of market and prices
2. Motive of self interest.
Answer:
The resources are allocated by the combined actions of the firms and the households and the central planning authority like the government.
Explanation:
Market economy is the economy where the demand and the supply laws direct the production of the services and goods. The supply involve the labor, natural resources and capital. Demand comprise of purchases by the consumers and the government.
In the market economy, the resources are allocated by the decisions of the firms and the households who are interacting in markets. It is an economy where the most economic decisions are the consequence from the interaction of the sellers and the buyers in the market but the government also plays a very vital role while allocation of resources are done.
Answer:
c. each duopolist wants a larger share of the market to capture more profit.
Explanation:
An agreement between two duopolists to function as a monopolist usually breaks down because each duopolist wants a larger share of the market to capture more profit.
When the market is occupied by few firms as it is in the case of a duopoly, the possibility of collusion exists because it is characteristic of duopolies to set price and determine quantity to be produced in the bid to maximize profits. Nevertheless this collusion is usually short-lived because ultimately each firm faces the selfish desire of gaining more market share by cutting prices.
