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nalin [4]
3 years ago
13

One problem with the consumer price index stems from the fact that, over time, consumers tend to buy larger quantities of goods

that have become relatively less expensive and smaller quantities of goods that have become relatively more expensive. This problem is called ____.
Business
1 answer:
BigorU [14]3 years ago
4 0

Answer:

SUBSTITUTION BIAS

Explanation:

Substitution bias occurs when a customer decides to purchase a substitute of a good after the prices becomes cheaper than the goods they normally purchase. It rises as a problem in price index due to the fact that customers/buyers can decide to change or substitute goods at an instant because of changes in prices. In situations like this, customers tend to avoid the whole increase in prices by changing to cheaper substitutes. Substitution generally is a consumer changing or substituting an expensive product for a cheaper one due to changes in prices. This usually leads to inflation rate been overestimated or overstated.

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Victory Corporation sold 400 shares of treasury stock for $45 per share. The cost for the shares was $35. The entry to record th
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Answer:The entry to record the sale will include a Credit toPaid in Capital from  treasury stock at $4,000.

Explanation:

Journal entry to record sale of shares

Accounts and explanation          Debit                  Credit

Cash                                        $18,000

Treasury stock                                                      $14,000      

Paid in Capital from Treasury STOCK                  $4,000

Calculation

CASH = Number of  shares x Price per share

= 400 x $45=$18,000

Treasury stock = Number of  shares x Price per share

= 400 x $35=$14,000

Paid In Capital = Cash - Treasury stock= $18,000- $14,000= $4000

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Can poor ethics lead to criminal behavior?
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Explanation:

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