Answer:
Usually, when a price ceiling is imposed, the demand for the product goes up. This can cause a shortage of products because of their high-demand. Conversely, the opposite occurs when a price floor is imposed.
Answer:
Equilibrium price = Decreases
Equilibrium quantity = Indeterminate
Explanation:
Here, we suppose that tea and coffee are substitute goods and we know that substitute goods have a positive cross price elasticity of demand.
So, if there is a fall in the price of tea then as a result the demand for coffee decreases which shifts the demand curve of coffee leftwards.
And, there is a fall in the price of coffee beans due to the better weather condition and coffee beans are used as an ingredient for producing coffee.
Hence, there is a fall in the cost of production of coffee which increases the supply of coffee and shifts the supply curve of coffee rightwards.
Therefore, there is a fall in the equilibrium price level of coffee and the effect of these shifts on the equilibrium quantity is indeterminate because that will be dependent upon the magnitude of the shifts of both the curves.
Answer:
1. Yes; Journal entry
2. Debit- Printing & Stationery Expense $160 (value for 8 boxes)
Credit- Cost of goods sold or Trading account A/c $160
3. Leaves to the cost of goods sold account
Explanation to:
1. Mackalaya used inventory. Remember, inventory is a term used to refer to all the merchandise (goods or products) a company has at the moment in stock.
2. The Journal entry to be made would be
Debit- Printing & Stationery Expense $160 and Credit this value to Cost of goods sold or Trading account A/c section of the Journal entry.
3. Remember, the cost of goods sold cares for all inventory sales, therefore it would be credited with value of the inventory item sold by the company.
Answer and Explanation:
The journal entries are shown below:
cash Dr $7,500
To Service revenue $7,500
(being cash receipts is recorded)
Prepaid insurance $3,060
To cash $3,060
(being cash paid is recorded)
Musical equipment Dr $10,500
To cash $10,500
(being cash paid is recorded)
Cash Dr $11,000
To note payable $11,000
(being receipt of the loan is recorded)
These four journal entries are need to be recorded
Answer:
and proportional costs benefit (true)
Explanation:
Human beings tend to be rational beings, and as such we behave when we go shopping. If a company raises the price of a product, the company will sell fewer units of that product and, in the same way, if the product is cheaper, it can have more sales.
But more or less sales does not mean more or less revenue for the company. If this were the case, all companies would simply limit themselves to lowering the price with sufficient margin to obtain greater benefits. Actually, there is a way to know what the price would be that would maximize the income of the product and therefore the benefits. It is the so-called elasticity of demand.
