The problems with price gouging laws that keep prices low are:
- Price gouging laws do nothing to address the underlying issues that cause shortages after a disaster. In fact, they often make the problem worse.
- When prices rise after a disaster, producers are encouraged to produce more of the good and bring it to the disaster area; price gouging laws short circuit this effect.
Here are the options to this questions:
- Price gouging laws reduce shortages after a disaster by keeping prices low.
- Price gouging laws do nothing to address the underlying issues that cause shortages after a disaster. In fact, they often make the problem worse.
- When prices rise after a disaster, producers are encouraged to produce more of the good and bring it to the disaster area; price gouging laws short circuit this effect.
- When prices rise after a disaster, consumers are encouraged to consume less of the good and leave some for others to purchase; price gouging laws short circuit this effect.
- Price gouging laws keep prices low after a disaster. This forces producers to produce more of the needed goods
- Price gouging laws keep prices low after a disaster. This forces consumers to buy less of the good than they otherwise would
Price gouging is when the price of a good or a service is increased to very high levels when the demand for the product is higher than the supply of the product. Price gouging usually occurs after an event. For example, after a natural disaster.
In order to prevent price gouging, the government can set a price ceiling. A price ceiling is when the maximum price for a good or service is set by the government. When prices are prevented from rising above a particular price, this benefits consumers as they would be able to purchase goods at a cheaper price. But producers would be disadvantaged because their profit margins would fall. This can lead to a shortage problem as demand would exceed supply.
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Answer:
Explanation:
The journal entries are shown below:
On July 15:
Purchase A/c Dr $89,180
To Accounts payable $89,180
(Being purchase of goods are made on credit with discount)
The computation of the purchase of tires after applying the discount is shown below:
= Number of tires × price per tire - discount rate
= 2,600 tires × $35 - 2%
= $91,000 - $1,820
= $89,180
On July 23:
Account payable A/c Dr $89,180
To Cash A/c $89,180
(Being payment is made)
On August 15:
Account payable A/c Dr $89,180
Interest expense A/c Dr $1,820
To Cash A/c $91,000
(Being payment is made on late interval)
Answer:
$45,655
Explanation:
The computation of the amount change in cash for 2011 is given below:
= Issued stock for cash - expenses incurred for cash + cash received from account receivable - purchase value of land for cash
= $51,500 - $10,120 + $10,350 - $6,075
= $45,655
Simply we recognized that transactions that involves only cash transactions
Answer:
c. Cultural
Explanation:
The LGBT marriages differ from the straight marriages mainly on the traditions and type of events that they have.
This community is most given to have a different kind of ceremy, which different kinds of games, type of place and traditions.
In consequence, if a wedding services company is ought to change its marketing strategy should go to make cultural changes, offering the community the type of wedding they like.
Answer:
Net income for the year = $257,000
Explanation:
Retained earnings for the year= Net income - dividends paid.
Since no dividends were paid, retained earnings for the year = net income for the year. At the end of each accounting period, retained earnings are reported on the balance sheet, and the retained profits for the year are added to the beginning balance of retained earnings, to give a cumulative ending balance of $2,499,000.
therefore retained earnings for the year = ending retained earnings balance - beginning retained earnings balance = $2,499,000.-$2,242,000= $257,000.
Net income for the year is thus = $257,000 since no dividends were paid.
