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3 years ago

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

Business

1 answer:

Masja [62]3 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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A leftward shift in the supply curve for a good may be caused by any of the following except A. consumer expectation of an incre

nydimaria [60]

Answer: A. consumer expectation of an increase in their future income.

Explanation:

The supply curve is simply a graph that shows the relationship that is between the price of a particular good and the amount of quantity that is supplied.

A leftward shift in the supply curve for a good simply means that less of that good is supplied. All tye options will cause less of the goods to be supplied except consumer expectation of an increase in their future income.

3 0

3 years ago

Read 2 more answers

During the current month, Grey Company sold 60,000 units for $10 each. Each unit had an equivalent cost of $6 each. The journal

Romashka [77]

Answer:

The sale entry would be:

Dr Trade Receivable $ 600,000

Cr Sale $600,000

And the inventory sent out of warehouse to customer would be recorded as:

Dr Cost of goods sold $360,000

Cr Finished Goods account $360,000

Explanation:

As we know the sale is credit in nature and inventory sold on credit increases the trade receivable which is debit in nature.

So the entry would be:

Dr Trade Receivable $ 600,000

Cr Sale $600,000

And the inventory sent out of warehouse to customer would be recorded as:

The reason is that once the product is sold then the cost of finished goods is eliminated from the inventory account and would be charged to the cost of goods sold. So the entry would be posted by the cost of equivalent that the company has incurred to manufacture the product. Here the cost of equivalent is given and is $6 per unit.

So for the sale of 60,000 units the total cost of equivalent will be:

Total equivalent cost = 60,000 units * $6 per unit = $360,000

And the entry would be:

Dr Cost of goods sold $360,000

Cr Finished Goods account $360,000

3 0

3 years ago

Garcia Company issues 11.5%, 15-year bonds with a par value of $450,000 and semiannual interest payments. On the issue date, the

noname [10]

Answer:

Journal Entry

Date Account Titles and Explanation Debit Credit

Jan 1 Cash $511,875

Bond payable $450,000

Premium on bond payable $61,875

($450,000*13.75%)

(To record issue of bonds at premium)

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3 years ago

There are different standards for due process in civil and criminal cases. True or False

kobusy [5.1K]

That statement is false

Due process refers to the treatment that both parties involved in a case should experience in order to obtain a hearing. The standard for the treatment is the same for civil and criminal cases. The only thing that different between the two only the magnitude of the punishment.

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3 years ago

Kleen Company acquired patent rights on January 10 of Year 1 for $400,000. The patent has a useful life equal to its legal life

inessss [21]

Answer:

a. Particulars Amount

Patent cost $400,000

Less: Amortization for 3 years $150,000 ($400,000*3/8)

Book value at the end of year 3 $250,000

Addition during Year 4 $20,000

Total book value $270,000

Patent amortization expense for the Year 4 = Total book value / Remaining life

Patent amortization expense for the Year 4 = $270,000 / 5

Patent amortization expense for the Year 4 = $54,000

b. Adjusting Entry

Date Account titles Debit Credit

Amortization expense $54,000

Patents $54,000

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3 years ago