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Mamont248 [21]
3 years ago
14

Which of the following scenarios would cause a surplus in a market? a. The actual price is $20, the equilibrium price is $25, th

e quantity demanded is 100 and the quantity supplied is 75. b. The actual price is $25, the equilibrium price is $20, the quantity supplied is 100 and the quantity demanded is 75. c. The actual price is $25, the equilibrium price is $20, the quantity demanded is 100 and the quantity supplied is 75. d. The actual price is $20, the equilibrium price is $25, the quantity supplied is 100 and the quantity demanded is 75.
Business
1 answer:
stepan [7]3 years ago
5 0

Answer:

The correct answer is option b.

Explanation:

A market will experience a surplus when the quantity supplied is higher than the quantity demanded. The quantity supplied will be more than the quantity demanded when the actual price is higher than the equilibrium price.  

This is because of the law of supply and the law of demand. At a higher price, the firms will supply more but the consumers will demand less.  

So the market will be in surplus when the actual price is $20, the equilibrium price is $25, the quantity supplied is 100 and the quantity demanded is 75.

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Kim works for a clothing manufacturer as a dress designer. She travels to New York City to attend five days of fashion shows and
Anuta_ua [19.1K]

Answer and Explanation:

a. The computation of the amount deducted as if there is no reimbursement is

= Airfare charges + lodging for 5 days + meals for 5 days at 50% limit + full airport transportation

= $1,500 + $1,920 × 5 days ÷ 8 days + $1,440 × 5 days ÷ 8 days × 50% + $120

= $1,500 + $1,200 + $450 + $120

= $3,270

The unreimbursement travel expenses for an employee is 2% of adjusted gross income

b. The tax treatment in case of the independent contractor

= Airfare charges + lodging for 5 days + meals for 5 days at 50% limit + full airport transportation

= $1,500 + $1,920 × 5 days ÷ 8 days + $1,440 × 5 days ÷ 8 days × 50% + $120

= $1,500 + $1,200 + $450 + $120

= $3,270

It would remain the same in case of the independent contractor also.

3 0
3 years ago
Answer the question on the basis of the following information. Assume that if the interest rate that businesses must pay to borr
Kay [80]

Answer:

The answer is: C) Investment spending by businesses varies inversely with the interest rate.

Explanation:

This statement is true all the time. When a company evaluates the costs and benefits of an investment, interest rate plays a fundamental part in those calculations. The two basic reasons for that are:

  1. The higher the interest rate a company (or any individual) has to pay for a loan, the harder it is for the company to repay the loan.
  2. The interest rate a bank charges is usually correlated to the opportunity cost of an investment. The higher the interest rates banks charge, the higher the internal rate of return (which is used to calculate the Net Present Value of an investment) will be. This is because banks don´t print money, they take in deposits and then they loan the money the someone else. So if the interest rate the bank charges is high, usually the interest rates the bank pays for the deposits is also high. Instead of investing, a company might just put their money on the bank and earn a better return rate.  
7 0
3 years ago
The analytical tool designed to
sergiy2304 [10]

Answer:

In his traditional role Finance

Manager is responsible for

Select one:

a

Running the business smoothly

b

Proper utilisation of the funds

c

Arranmgement of financial

resources

d

Efficient management of cash

Explanation:

In his traditional role Finance

Manager is responsible for

Select one:

a

Running the business smoothly

b

Proper utilisation of the funds

c

Arranmgement of financial

resources

d

Efficient management of cash

7 0
3 years ago
Currency held outside banks is $200 billion, money market mutual funds (retail) are $10 billion, small-denomination time deposit
ratelena [41]

Answer:

M2 = $470 billion.

Explanation:

M2 = Currency + Money market mutual fund + Time deposits + Saving deposits

M2 = 200 billion + 10 billion + 40 billion + 220 billion

M2 = $470 billion.

M2 is a calculation of the money supply that includes all elements of M1 as well as "near money"

3 0
3 years ago
The W. J. Clinton Company issued 750 shares of $1 stated value common stock in exchange for land from the Whitewater Investment
MrMuchimi

Explanation:

The journal entry is as follows:

Land  Dr $70,000

Additional paid in capital  $5,000

             To Common stock $75,000

(Being the common stock is issued in exchanged for cash)

The computation of the additional paid in capital is shown below:

= Common stock - the appraised value of land

where,

The common stock = 750 shares × $100 = $75,000

And, the  appraised value of land is $70,000

So, the remaining balance is

= $75,000 - $70,000

= $5,000

The $5,000 would be recorded as an additional paid in capital

4 0
3 years ago
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