Answer: More elastic; Lower
Explanation:
Before the entry of a new firm, there is only one firm exist in the market and that single firm is experiencing a monopoly power. But when there is a entry of its competitor then as a result second firm have to reduce their prices of the products as demand is elastic. We know that market is very sensitive to the prices. This fall in prices will lead to increase the demand for the products but with the lower prices, the marginal revenue of the second firm will be more elastic because of the lower prices.
Answer:
price ceilings; shortage
Explanation:
Price control is defined as government imposed prices to regulate the way forms make profit in the market. Take for example if a product is in high demand and firms can raise prices very high to make profit. To protect the consumer the government will set a price ceiling to limit price increase.
In Venezuela when price ceilings were implemented the sellers will create artificial shortage which forces the consumer to buy at higher prices in a black market arrangement.
Answer: Credited for the original estimated price for the supplies.
Explanation:
The encumbrance account is a budgetary account and encumbrance refers to the funds that are restricted in an account and are typically reserved for a specific purpose.
When the supplies that are ordered for use in an activity accounted for in the General Fund of a government are received at an actual price which is less than the estimated price on the purchase order, the encumbrance control account will have to be credited using the original price that was estimated for the supplies.
The effect of this error at the end of the year is:Understatement of net income $2000 and Overstatement of costs of goods sold $2000.
<h3>Effect of this error at the end of the year</h3>
Since the company understated their ending inventory during their first year by the amount of $2,000. The effect of the ending inventory that was understated will be:
- Understatement of net income of the amount of $2000
- Overstatement of costs of goods sold of the amount of $2000
Learn more about Effect of this error at the end of the year here:brainly.com/question/17091446
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