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Gemiola [76]
3 years ago
6

You're an entrepreneur and had a great idea to sell shoes that have springs installed in them to make walking easier. However, t

he development costs were so high that the shoes are priced 15 times higher than shoes without springs. As a result, many of the shoes have gone unsold. What possible event could eliminate the disequilibrium in the market for shoes?
A. A study reveals that shoes with a spring can increase the chance of a broken leg.
B. There is an increase in income and "spring shoes" are a normal good.
C. There is an increase in income and "spring shoes" are an inferior good.
D. There is a decrease in the price of rubber, which is an input in the production of shoes.
B. There is an increase in income and "spring shoes" are a normal good.
Business
1 answer:
TiliK225 [7]3 years ago
6 0

Answer:

B. There is an increase in income and "spring shoes" are a normal good.

Explanation:

To eliminate the disequilibrium in the market for shoes, spring shoes firstly needs to be seen as a normal product because if it is seen an inferior product then as people's Income rises they woudnt want to buy inferior products because they have the income to buy normal products. As people income rises, since spring shoes is seen as a normal product, then people will buy springshoes

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3 0
3 years ago
The following data were accumulated for use in reconciling the bank account of Creative Design Co. for August 20Y6: Cash balance
Virty [35]

Answer:

A)

Bank reconciliation:

Bank balance Augusts 31                    $18,340

+ Deposits in transit                              $2,830

<u>- Outstanding checks                           $3,520</u>

Reconciled bank account                   $17,650

Cash balance reconciliation:

Cash balance August 31                     $17,350

+ Error in recording check                      $360

<u>- Bank fees                                                 $60</u>

Reconciled cash account                   $17,650

B) Cash account balance $17,650

5 0
3 years ago
Klamath+corporation+has+asset+turnover+of+3.5,+a+profit+margin+of+5.2%,+and+a+current+ratio+of+0.5.+what+is+klamath+corporation'
NARA [144]

Klamath corporation has insufficient information to find ROE.

Return on equity (ROE) is the degree to of an agency's internet earnings are divided by using its shareholders' equity. ROE is a gauge of a corporation's profitability and how successfully it generates one's income. The better the ROE, the higher an employer is at changing its fairness financing into income.

ROE is used while evaluating the monetary performance of agencies within the identical enterprise. it's far a measure of the capability of management to generate earnings from the equity available to it. A go-back of between 15-20% is considered good.

The return on equity is a degree of the profitability of an enterprise with regard to fairness. Because shareholder's equity may be calculated with the aid of taking all belongings and subtracting all liabilities, ROE also can be the idea of a return on belongings minus liabilities.

ROE=Profit margin*Total asset turnover*Equity multiplier

Hence since Equity multiplier data is not given.

Learn more about ROE here: brainly.com/question/26849182

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4 0
2 years ago
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Schach [20]

Answer:

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The First case

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Explanation:

See attached images for the other two cases

8 0
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The ratio of sales to the value of fixed assets is known as fixed-asset turnover. It shows how effectively the company is generating sales by utilizing its fixed assets.

A greater ratio is typically preferred since it suggests that the business is effective at producing sales or revenues from its asset base. A lower ratio suggests that a business is not utilizing its resources effectively and may be experiencing internal issues.

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3 0
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