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3 years ago

The distinction between a normal and an inferior good is

Business

1 answer:

Romashka-Z-Leto [24]3 years ago

5 0

Answer:

The correct answer is C. when income increases, demand for a normal good increases while demand for an inferior good falls.

Explanation:

The normal good is that whose quantity demanded for each of the prices increases when the rent increases. A lower good is one whose quantity demanded decreases when income increases. The inferior goods are usually those for which there are higher quality alternatives. When it comes to a normal good, increasing the income of the consumer increases the quantity demanded at each price. Causing a shift in demand to the right.

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9. Problems and Applications Q9 Suppose that a borrower and a lender agree on the nominal interest rate to be paid on a loan. Th

den301095 [7]

Answer: False

Explanation:

The real interest rate is the nominal interest rate adjusted for inflation.

If the nominal interest rate was made with inflation in mind and this inflation is less than anticipated, the real rate will be higher not lower than expected.

For instance: Assume the nominal rate is 8% and the two parties assumed inflation would be 4%. Real rate would be:

= 8 - 4 = 4%

If inflation is instead 2%, real rate would be:

= 8 - 2 = 6%

Real rate would be higher than anticipated.

8 0

3 years ago

x-co issued 1,000 shares of its 5%, $10 par value, cumulative preferred stock for $100 cash per share. the journal entry to reco

gizmo_the_mogwai [7]

If the company issued 1,000 shares of its 5%, $10 par value, cumulative preferred stock for $100 cash per share. the journal entry to record this event includes: is: Debit Cash $100,000 ; Credit to Preferred Stock $100,000.

<h3>How to prepare the journal entry?</h3>

Based on the given information we were told that the company issued 1,000 shares in which the cumulative preferred stock is the amount $100 cash per share. The appropriate journal entry to record the transaction is:

Journal entry

Debit Cash $100,000

Credit to Preferred Stock $100,000

( To record preferred stock)

Workings:

Preferred stock = 1,000 shares × $100 cash per shares

Preferred stock = $1000,000

Therefore the correct journal entry to record the transaction is to debit cash with the amount of $100,000 and credit Preferred stock with the amount of $100,000.

Learn more about journal entry here: brainly.com/question/14279491

#SPJ1

6 0

1 year ago

Revved Rider Inc., a motorcycle company, is the market leader due to its superior engine technology and service orientation. The

Eddi Din [679]

<u>Answer:</u> Option B

<u>Explanation:</u>

Revved Rider company is the market leader as the company possess a superior engine technology that is not owned by other companies. This proves that the company has competitive advantage of technology over the competitors in the market.

Competitive advantage means having an advantageous quality which the other companies do not have in the market. When a company has competitive advantage it can become a price leader or market leader. It also becomes the consumer's most preferred company when compared to other companies.

5 0

3 years ago

Consider a mutual fund with $203 million in assets at the start of the year and with 10 million shares outstanding. The fund inv

balu736 [363]

Answer:

8.66%

Explanation:

The computation of the rate of return for the investor in the fund is as follows:

= (Net assets at the end + dividend per share - nav at the beginning of the year) ÷ (nav at the beginning of the year)

where,

Net assets at the end is

= $203 million + $203 million × 7% - ($217.21 million × 0.75%)

= $203 million + $14.21 million - $1.6291 million

= $217.21 million - $1.6291 million

= $215.58093 million

Dividend per share is

= $5 million ÷ 10 million shares

= 0.5

Nav at the beginning of the year is

= $203 million ÷ 10 million shares

= $20.3

Now the rate of return is

= ($215,.58093 + 0.5 - $20.3) ÷ ($20.3)

= 8.66%

6 0

3 years ago

Furnco sells secretarial chairs. Annual demand is normally distributed, with mean of 1,040 chairs and standard deviation of 50.9

kaheart [24]

Answer:

Reorder point is 40

Explanation:

Reorder point is the level of inventory which trigger the purchase of new inventory.

The formula for Reorder point is

Annual demand * Leadtime + Safety Stock

Reorder Point = 1040 / 365 * 14 days + 0

= 40.

The lost sales cost is $50 in goodwill, Furnco should keep a safety stock of at least 30 chairs in order to meet demand level.

7 0

3 years ago