Which of the following illustrates the law of demand? a. Jorge buys fewer pencils at $2 per pencil than at $1 per pencil, ceteri
s paribus. b. Chen buys more ice cream at $4 per half-gallon than at $3 per half gallon, ceteris paribus. c. Karissa buys fewer sweaters at $50 each than at $35 each, ceteris paribus. d. a, b, and c e. a and c
1 answer:
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.
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Answer:
We are given all the details of the activity and the results of those activities, like the cost and revenue.
The multi step income statement shall be as follows:
Income:
Revenue from Sales = $2,391,000
Other Income = $0
Total Revenue = $2,391,000
Expenses:
Cost of goods sold = $1,168,860
$23 50,820
Selling and Administrative = $303,100
Interest Expense = $13,060
Total Expenses = $1,485,020
Net Income before Taxes = $905,980
Less: Taxes on income = $220,400
Income from Continuing Operations = $685,580