Suppose a tax is imposed on bananas. In which of the following cases will the tax cause the equilibrium quantity of bananas to s
1 answer:
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Answer:
e. a and c
Explanation:
The law of demand states that the higher the price, the lower the quantity demanded and the lower the price, the higher the quantity demanded. This occurs because of the law of diminishing marginal utility.
The law of diminishing marginal utility states that the more of a commodity is consumed, the lower the utility derived from the consumption of the product.
It follows that Jorge and karissa would demand less of pencils and sweaters as their prices rise.
The demand curve is usually downward sloping to illustrate the law of demand.
Answer: 3.39
Explanation: Current ratio can be defined as a liquidity ratio which is used by the accountants the evaluate the ability of the company to pay its short term obligations. It can be computed as follows :-
where,
current assets = $38,500 + $100,000 + $90,500 + $126,000 + $13,100 = $368,100
current liabilities = $108,400
now putting the values into equation we get :-
= 3.39