Answer:
The equilibrium quantity will decline. The equilibrium price depends upon the extent of change in demand and supply.
Explanation:
When consumer items go out of style their demand decrease. This causes the demand curve to shift leftwards. At the same time, the production of such items s stopped. This further causes the supply to decrease. The supply curve, as a result, shifts leftwards.
This leftward shift in both demand and supply curve will lead to a decline in the equilibrium quantity. The change in price depends upon the extent of change in demand and supply.
<span>JAD, joint application development, is a joint process that uses both the user and IT together to create the application. RAD, rapid application development, is similar to JAD but is much faster and takes far less time. Both are fast methods and can save cost for a company. With JAD it is likely to get a more quality product due to the involvement of the user in creating the application.</span>
Answer:
D. Any of the above, depending on the transactions
Explanation:
The double entry principle simply means that any accounting transaction has two records: one credit, and one debit, and it depends on the nature of the transaction, and of the accounts involved which specific value is credited and which one is debited.
For example, if a firm purchases 100$ of office supplies with cash, the credited account is cash, because cash is reduced by $100, while the office supplies account is debited by the same value.
If a firm sells 100$ of office supplies instead, the office supplies inventory is credited for this value, while the same amount of cash is debited for this same amount.
Answer:
B. an advertising strategy designed to change consumer tastes and preferences
Explanation:
Increasing the demand for a product refers to the activities of making products desirable to customers. It involves interesting customers with the product or services to influence them to purchase.
Advertising is a strategy for creating awareness for a product in the market. It entails communicating the benefits of a good or service to potential customers in a manner that persuades them to buy. Advertising creates the demand for a product by influencing customer perceptions and opinions on the commodity or service.
Answer:
Assume that the Plow back Ratio is 50
Now,
To Compute the growth rate;
Growth rate = Return on equity × Plow back ratio
Growth rate = 10% × 0.50
Growth rate = 5.0%
Computation of the stock price.
Stock price = Dividend pa share / (Required rate - Growth rate)
Stock price = Earnings pa share × (1 - Plow back ratio) / (Required rate -Growth rate)
Stock price = $4 × (1 - 0.50) / (10% - 5.00%)
Stock price = $2.00 / 5.00%
Stock price = $40
Computation of the P/E ratio.
PIE ratio = Stock price / Earnings pa share
PIE ratio = $40 / $4
PIE ratio = $10