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4 years ago

If a decrease in income increases the demand for a good. True or False

Business

1 answer:

Masja [62]4 years ago

3 0

Answer:

If a decrease in income increase the demand for a good , the good is an inferior good.

An inferior good is a good whose demand falls when income rises and rises when income falls.

Inferior goods have an indirect relationship with income

A normal good is a good whose demand rises when income increases and falls when income falls.

Normal goods have a direct relationship with income.

A substitute good is a good that can be used in place of another good. For example if good A and B are substitutes, if the price of good A increases, it would become more expensive for consumers and consumers would shift to consuming good B. As a result the demand for good B would rise and the quantity demanded of good A would fall.

Complements are goods that are used together. If the price of one of the goods increases, the demand for the other good falls and vice versa.

For example, gasoline and car are complements. If the price of cars fall, people would increase their demand for cars and as result the demand for gasoline would increase.

I hope my answer helps you

Explanation:

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Which company re locate in the us ?

Lubov Fominskaja [6]

walmart, hole this helps

8 0

3 years ago

Changes in variables, such as income, cost of living, interest rates, and savings and borrowing patterns most likely reflect cha

trasher [3.6K]

The correct answer is Economic.

Types of environment for a company include:

The economic environment
The Demographic environment
The Political environment
The Cultural environment

The economic environment of a company includes factors like Income, cost of living, interest rates, and savings & borrowing

The Demographic environment of a company includes factors like Age, race, and gender.

The Political environment of a company includes factors like Government, legislation, and regulations.

The Cultural environment of a company includes factors like Lifestyle, customs, traditions etc.

Hence, Changes in variables, such as income, cost of living, interest rates, and savings & borrowing patterns most likely reflect changes in the economic environment of a company.

Learn more about interest rates:

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8 0

2 years ago

Beene Distributing is considering a project that will return $150,000 annually at the end of each year for the next six years. I

mr_godi [17]

Answer:

$714,980.95

Explanation:

The most it would be willing to pay is the present value of the cash flows

present value is the sum of discounted cash flows from a project

present value can be determined with a financial calculator

Cash flow each year from year 1 to 6 = $150,000

I = 7%

Present value = $714,980.95

To find the PV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

8 0

3 years ago

1. Barry Cain invested $38,000 cash to start an appliance repair business. 2. Hired an employee to be paid $500 per week, starti

attashe74 [19]

Answer:

No. Account Titles & Explanation Debit Credit

Cash $38,000

Barry Capital Account $38,000

No Entry Requires as Employee are only Hired there id no financial transaction involved in hiring the employees only.

Prepaid Rent $10,800

Cash $10,800

Wages Expense $500

Cash $500

Cash $2,900

Revenue $2,900

Explanation:

1. Cash paid is the capital contribution in the business so cash account will be debited and capital account will be credit as per their nature.

2. Hired an employee does not need any transaction as there is no financial involvement in just hiring an employee.

3. Prepaid expense is actually an asset for us as we paid expenses in advance which is not incurred yet. It will be recognized as expense with passage of time.

4. Payment to worker is an expenses against a credit to cash as wage is paid in cash.

5. Revenue earned should be recorded and also received so cash will be debited for the receipt from sales and revenue shold be debited due to its nature of account.

8 0

4 years ago

Clampett, Incorporated, has been an S corporation since its inception. On July 15, 2021, Clampett, Incorporated, distributed $50

statuscvo [17]

Answer:the total amount of income J.D. recognizes related to Clampett, Incorporated, in 2021 =$5,000

Explanation:

Income of J.D related to Clampett = Ordinary income + Capital gain

Given that Basis distribution = $50,000

Basis stock = $45,000

Ordinary income = $10,000

But Capital gain = Basis distribution -( Basis stock + Ordinary income)

Capital gain = $50,000 - ($45,000 +$10,000)

Capital gain = $50,000 - $55,000

Capital gain = = - $5,000

Therefore J.D. income related to Clampett = Ordinary income + Capital gain =$10,000 +(- $5,000)

=$10,000 - $5,000

=$5,000

7 0

3 years ago