Answer:
Substitution
Explanation:
Principle of subsitution states that no consumer should buy a product for a high price of he can get an alternative (duplicate) that is of a cheaper price.
Substitutes are alternatives that provide similar satisfaction to the customer.
When the price of one product goes up the customer has a choice of going for an alternative.
For example honey and sugar are substitutes. When the price of one goes down people will go for the cheaper alternative. This acts as a price control mechanism.
If there's upward pressure on price, there would be an increase in the quantity supplied.
<h3>What the relationship between price and the quantity supplied?</h3>
There is a positive relationship between price and the quantity supplied. When there is an increase in price, the quantity supplied increases all things being equal.
The positive relationship between price and the quantity supplied is a result of the desires to earn more profit. So when price increases, in order to earn higher income, producers would increase the quantity supplied. This postulation is in line with the law of supply.
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Answer: $129480
Explanation:
Based on the information given, the amount of their AMTI will be calculated as:
AGI = $99600
Add: Excess Depreciation on Real Estate = $59760
Less: Mortgage Interest Expenses = $19920
Less : Charitable Contribution = $9960
AMTI = $129480
Answer:
FIFO ending inventory = $290000
Explanation:
given data
current year inventory = $200,000
end of the current year inventory = $250,000
start of the year LIFO reserve = $30000
end of the year LIFO reserve = $40,000
solution
LIFO reserve is difference between inventory using LIFo and inventory using FIFO
so
FIFO ending inventory = LIFO ending inventory + LIFO reserve ...............1
put her evalue we get
FIFO ending inventory = $250000 + $40000
FIFO ending inventory = $290000
