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3 years ago

If the current price of a product is "below" the market equilibrium price, there is ________ of this product.

Business

2 answers:

Irina-Kira [14]3 years ago

8 0

Answer:

There is a shortage of the product.

Explanation:

The market demand curve is downward sloping indicating a negative relationship with price. While the market supply curve is upward sloping indicating a positive relationship with price.

At the market equilibrium, both demand and supply are equal. At a price below the equilibrium level, the market demand is greater than supply. This causes a shortage in the economy.

Shtirlitz [24]3 years ago

8 0

Answer:

If the current price of a product is "below" the market equilibrium price, there is higher demand of this product.

Explanation:

This analogy follows the law of demand that says the higher the price the lower the demand while the lower the price just as it was stated in the above mentioned analogy results into higher demand

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Roman55 [17]

Using the direct write-off method, Hanes will record the write-off of this account by <u>debiting</u> the Bad Debts Expense account.

<h3>What is the direct write-off method?</h3>

The direct write-off method is one of the methods for writing off uncollectible accounts.

With the direct write-off method, the bad debts expense account is <u>debited</u> while the accounts receivable are <u>credite</u>d.

Thus, using the direct write-off method, Hanes will record the write-off of this account by <u>debiting</u> the Bad Debts Expense account.

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2 years ago

The Riteway Ad Agency provides cars for its sales staff. In the past, the company has always purchased its cars from a dealer an

Oksana_A [137]

Answer:

NPV = -$149,319.44

Explanation:

Ten cars will be needed, which can be purchased at a discounted price of $18,000 each. If this alternative is accepted, the following costs will be incurred on the fleet as a whole:

Annual cost of servicing, taxes and licensing $5,100
Repairs, first year $3,000
Repairs, second year $5,500
Repairs, third year $7,500

the required rate of return or discount rate for Riteway is 20%.

Cash flows:

CF₀ = -$180,000

CF₁ = -($5,100 +$3,000) = -$8,100

CF₂ = -($5,100 + $5,500) = -$10,600

CF₃ = ($9,000 X 10) - ($5,100 + $7,500) = $90,000 - $12,600 = $77,400

using an excel spreadsheet, we can calculate the NPV with r = 20%

NPV = -$180,000 + $30,680.56 = -$149,319.44

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3 years ago

________ analytics finds the optimum value for a target variable by repeatedly changing other variables, subject to specified co

son4ous [18]

It should be noted that Extension of goal-seeking analysis, finds the optimum value for a target variable .

<h3>What is Goal seeking?</h3>

Goal seeking serves as one of the tools used in "what-if analysis" on computer software programs.

This analysis is performed by repeatedly changing other variables, subject to specified constraints.

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2 years ago

Levelor Company's flexible budget shows $10,710 of overhead at 75% of capacity, which was the operating level achieved during Ma

Salsk061 [2.6K]

Answer:

The correct answer is $473 (Unfavorable).

Explanation:

According to the scenario, the given data are as follows:

Actual overhead = $11,183

Budgeted Overhead = $10,710

So, we can calculate the controllable variance by using following formula:

Controllable variance = Actual overhead - Budgeted overhead

By putting the value, we get

Controllable variance = $11,183 - $10,710

= $473 ( Positive shows unfavorable)

= $473 (unfavorable)

3 0

3 years ago

Your grandmother tells you a dollar doesn't go as far as it used to. She says the " purchasing power" of a dollar is much less t

Harrizon [31]

Answer:

See below

Explanation:

My grandmother is referring to the effect of inflation on the currency. Economist defines inflation as the general but gradual increase of prices in the economy over time. As a country experiences economic growth, prices of goods and services tend to increase. The government monitors the increase in prices using tools like the consumer price index (CPI). The resultant figure from the CPI is the inflation rate.

The government desires to keep the inflation rate at a predetermined optimal level. Should the economy grow at a fast pace, the inflation rate will probably rise. The government will respond with measures to control the growth and maintain stable prices.

An increase in prices means that the dollar will buy fewer goods and services than it could previously. A high inflation rate means prices are increasing at a fast pace. The dollar will buy fewer goods, which translates to dollar weakening.

Deflation is the opposite of inflation. It means a general decrease in price in the economy. During deflation times, the dollar gains strengths. It buys more goods and services than in the previous season.

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3 years ago

If the current price of a product is "below" the market equilibrium​ price, there is​ ________ of this product.

If the current price of a product is "below" the market equilibrium price, there is ________ of this product.