Answer:
The three economic questions that every society must answer are as follows: "What to produce?" "How to produce?" and "For whom to produce?"
"What to produce": The quantity in which a commodity is to be produced is set at that level where demand equals supply. If quality produced is more or less, then there will be dis equilibrium in the market and price will fluctuate. Hence, to maintain stable equilibrium price it becomes necessary to make demand and supply equal.
"How to Produce": There are two types of techniques. A labor-intensive technique would employ relatively more labor and less capital. On the other hand, capital- intensive technique means more capital and less labor. The choice of technique depends on the prices of the factors of production. That is, if labor is cheap and capital is expensive, a labor-intensive technique would be considered and vice-versa.
"For whom to produce": The solution of this problem is very simple commodity can be consumed only by people who have more purchasing power. Price mechanism determines the income of the workers, i.e.; purchasing power. The purchasing power of the owner of capital is determined in the same way. Thus, when the price of every commodity and every factor of production are determined, the third problem will be solved
This is true. You can use the acronym FANBOYS to remember <span />
Answer: The answer is 1950000
Explanation:
✓ Goods in transit on December 31, 2008:
Goods amounting to 100000 will be added into purchases of the year-end because they have already been sold as risk and rewards have been transferred to the Barlow that is goods have been physically dispatched to the Barlow. Hence this will increase accounts payable by 100000.
✓Goods in transit lost:
These words will also be included in the purchases and accordingly in the accounts payable irrespective of the fact that these have been destroyed. These goods were dispatched to the Barlow and therefore risk and rewards also been transferred hence purchase is done from Barlow's perspective.
So:
Total accounts payables are as under
Opening balance: 180000
Goods in transit reached next year:100000
Goods in transit lost:50000
Total: 1950000
Answer:
-0.136 and $528
Explanation:
Given that
p = 50 - 0.5Q
where,
Q = 88
So, p equals to
= 50 - 0.5 × 88
= 50 - 44
= $6
As it is mentioned that
p = 50 - 0.5Q
0.5Q = 50 - p
Q = 100 - 2p
And we know that
Price elasticity of demand is
= Percentage Change in quantity demanded ÷ Percentage Change in price
So,
= -2 × (6 ÷ 88)
= -0.136
And, the revenue is
= Price × Quantity
= $6 × 88
= $528
Answer:
Both will bear
Explanation:
Both Mr. Janey and Ms. lacey will bear the incidence of the property tax increase because Mr. Janey has only shifted $540 ( $45 x 12) of the total $1200 by increasing the monthly rent charge of his tenant Ms. lacey by $45/month. Mr. Janey will pay only $660 of $1200 increase in tax and remaining will be paid by Mr Lacey.
