All categories

3 years ago

When the price of a normal good increases,

Business

1 answer:

Lostsunrise [7]3 years ago

4 0

Answer:

d. both the income and substitution effects encourage the consumer to purchase less of the good.

Explanation:

The income effect is the effect on the income when there are price changes. When the price increases, people can buy less products with the same income which means that the consumer will be encouraged to purchase less goods.

The substitution effect says that an increase in the price of a product will make customers to buy other similar products which will make them to purchase less of the good with the higher price.

You might be interested in

Bryan Corporation decided to purchase a plant site. Bill Shephard, a newly elected director, has owned a desirable site for many

tatiyna

Available options are:

A. The sale would be proper only upon requisite approval by the appropriate number of directors and at no more than Shephard's cost, thus precluding his profiting from the sale to the corporation.

B. The sale would be void under the self-dealing rule.

C. The sale would be proper and Shephard would not have to account to the corporation for his profit if the sale was approved by a disinterested majority of the directors.

D. The sale would not be proper, if sold for the present fair value of the property, without the approval of all of the directors in these circumstances.

Answer:

C. The sale would be proper and Shephard would not have to account to the corporation for his profit if the sale was approved by a disinterested majority of the directors.

Explanation:

The reason is that the transaction is arms length transaction and in this transaction the payer pays the amount that he must pay for an equivalent item which we call an fair value payment. The receiver here is a director though but he is receiving an legitimate price and this price is fair value of the property so he is not required to mention his profit share because the company is paying him fair value of the property.

4 0

3 years ago

Read 2 more answers

To start out, general operating expense should not exceed<br> O 7%<br> 33%<br> 2596<br> O<br> 10%

marshall27 [118]

Answer:

25%.

To start out, general operating expense should not exceed 25%.

Add-on:

i hope this helped at all.

8 0

3 years ago

According to the information in the Unit, which of the following occupations will most likely have the highest rate of decrease

Alla [95]

The occupation that is most likely to have highest rate of decrease over the next few years is the office clerks.

<h3>What is the Information Unit?</h3>

In this context, the unit of information assesses the jobs that are not likely to be in need for more workers and will have highest rate of decrease in next few years,.

Hence, the occupation that is most likely to have highest rate of decrease over the next few years is the office clerks.

Therefore, the Option C is correct

Read more about occupation

<em>brainly.com/question/1206328</em>

7 0

2 years ago

Nadine works for an accounting firm. she makes enough money for herself and has bought a house with a top-notch security system.

Alexus [3.1K]

In the given space provided, the answer is security needs. The safety or security needs revolve around of having to feel physically safe, secure with financial or personal security or being healthy in an over all as a well being in which Nadine has achieved one of them.

6 0

4 years ago

Easy ways to learn BRS

Furkat [3]

Answer:

BRS is a Bank Reconciliation Statement:

1. COMPARE THE DEPOSITS

Match the deposits in the business records with those in the bank statement. Compare the amount of each deposit recorded in the debit side of the bank column of the cashbook with credit side of the bank statement and credit side of the bank column with the debit side of the bank statement. Mark the items appearing in both the records.

2. ADJUST THE BANK STATEMENTS

Adjust the balance on the bank statements to the corrected balance. For doing this, you must add deposits in transit, deduct outstanding checks and add/deduct bank errors.

Deposits in transit are amounts that are received and recorded by the business but are not yet recorded by the bank. They must be added to the bank statement.

Outstanding checks are those that have been written and recorded in cash account of the business but have not yet cleared the bank account. They need to be deducted from the bank balance. This often happens when the checks are written in the last few days of the month.

Bank errors are mistakes made by the bank while creating the bank statement. Common errors include entering an incorrect amount or omitting an amount from the bank statement. Compare the cash account’s general ledger to the bank statement to spot the errors.

3. ADJUST THE CASH ACCOUNT

The next step is to adjust the cash balance in the business account.

Adjust the cash balances in the business account by adding interest or deducting monthly charges and overdraft fees.

To do this, businesses need to take into account the bank charges, NSF checks and errors in accounting.

Bank charges are service charges and fees deducted for the bank’s processing of the business’ checking account activity. This can include monthly charges or charges from overdrawing your account. They must be deducted from your cash account. If you’ve earned any interest on your bank account balance, they must be added to the cash account.

An NSF (not sufficient funds) check is a check that has not been honored by the bank due to insufficient funds in the entity’s bank accounts. This means that the check amount has not been deposited in your bank account and hence needs to be deducted from your cash account records.

Errors in the cash account result in an incorrect amount being entered or an amount being omitted from the records. The correction of the error will increase or decrease the cash account in the books.

4. COMPARE THE BALANCES

After adjusting the balances as per the bank and as per the books, the adjusted amounts should be the same. If they are still not equal, you will have to repeat the process of reconciliation again.

Once the balances are equal, businesses need to prepare journal entries for the adjustments to the balance per books

Explanation:

4 0

3 years ago