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katrin2010 [14]
3 years ago
14

A fall in the price level: Multiple Choice reduces the value of money in peoples' pockets, so people buy less goods. reduces the

value of money in peoples' pockets, so people buy more goods. increases the value of money in peoples' pockets, so people buy more goods. increases the value of money in peoples' pockets, so people buy less goods.
Business
1 answer:
sladkih [1.3K]3 years ago
7 0

Answer:

increases the value of money in peoples' pockets, so people buy more goods.

Explanation:

According to the law of demand, the higher the price, the lower the quantity demanded and the lower the price, the higher the quantity demanded.

If price level falls, the value of money rises as a consumer would be able to buy the same basket of goods at a reduced price. This would induce a consumer to buy more goods.

A rise in price levels reduces the value of money in peoples' pockets, so people buy less goods. 

I hope my answer helps you.

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Answer:

What would the impact of these transactions be during May on

  • (1) the balance of cash NO EFFECT, the account balance was not paid in May
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3 years ago
Beachside Realty rents condominiums and furnishings. Below is the adjusted trial balance at December 31.
Lana71 [14]

Answer and Explanation:

The journal entry required to close the expense account is given below:

Income summary Dr $33,520

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     To Income Tax Expense $2,700

(being the expenses accounts are closed)

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3 years ago
Which one of the following statements is true? Select one: a. If the materials price variance is unfavorable, then the materials
Amanda [17]

Answer:

C

Explanation:

Price and quantity variances move in the same direction. If one is favorable, the others will be as well. This is because there is a direct relationship between price and quantity. If one is favourable the other is likely to be favourable and if one is adverse the other is likely to be adverse.

3 0
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Lower-of-Cost-or-Market Inventory On the basis of the following data, determine the value of the inventory at the lower of cost
ANTONII [103]

In class 2 ., The Model D is the Top/ favorite one having highest market return (24%) with lowest inventory cost ($79)

Explanation:

To Determine the value of the inventory at the lower of cost or market applied to each item in the inventory. simply we should calculate the profit margin for each category

Profit margin =  (market value - cost price) = Profit ÷ cost price × 100

Class 1:

Model A

46 $116 $139  

Profit margin = (139 - 116) = 23  ÷ 116 × 100 = 19.32%

Model B

49 243 239

Profit margin =  (239 - 243)= -4 ÷ 243 × 100 = - 1.65% (loss)

Model C

43 233 252

Profit margin =   (252 - 233) = 19 ÷ 233 × 100 =  8.15%

Class 2:

Model D

37 79 98

Profit margin =  (98 - 79) = 19 ÷ 79 × 100 =  24%

Model E

6 151 130

Profit margin =  (130 - 151) = - 21 ÷ 79 × 100 = -13.91 % (loss)

Result

In class 1

Model A is preferable., It has the lowest inventory value and has highest market value (Returns) at 19.82%

In class 2

Model D is preferable., It has the lowest inventory value and has highest market value (Returns) at 24%

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