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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.

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In Sid's Surf Shop, there is a 10-foot long surf board on legs with swimwear on it near the entrance to the department where sur

shtirl [24]

Answer: Free Standing display Unit.

Explanation:

Free standing display units( FSDU), also known as Floor Standing Display Units are cost effective ways used to showcase a product, they are noticeable ways of advertising by placing a brand in such a manner or position that will be most attractive to customers or target customers. Such brands are specifically placed in customer's way, FSDU are special customized display units that can be easily made from cardboards or other materials which can be formex stands.

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3 years ago

The purpose of the Splish Brothers Division is to develop a nuclear-powered aircraft. If successful, traveling delays associated

Ber [7]

Answer: Please refer to Explanation.

Explanation:

Your question was incomplete so I attached the missing details.

The Carrying Amount of the Division has to be ascertained to move forward as it is needed in calculating the loss on Impairment. It is calculated by subtracting Goodwill from the Net Assets.

= 496 - 214

= $282 million

Calculating the Loss on impairment is done by the following formula,

= Market Price - Carrying Amount of the Division (net of Goodwill) - carrying value of Goodwill

= 335 - 282 - 214

= -$161 million.

Journal Entry

DR Loss on Impairment $161 million

CR Goodwill $161 million

(To record the loss on Impairment)

8 0

3 years ago

Prextos Corp., after incurring losses, decides to move its manufacturing unit to a foreign location where it would get labor at

Darya [45]

Answer:

Offshoring

Explanation:

offshoring is the process of moving an aspect of a business process overseas with the intention of reducing cost.

A firm can move its manufacturing process from its own parent country to another country (usually where the labour rate and cost of raw materials is cheap compared to what it obtainable in its home country) in other to reduce its cost of production thereby increasing its added value.

From the above explanation, we can conclude that Prextos is planning to employ Offshoring to cut down losses.

7 0

3 years ago

Suppose that the Federal Reserve has set the required reserve ratio at 0.20 (that is, 20%). Second Republic Bank currently has $

Aliun [14]

Answer:

Reserves = $105,000

Required reserve = $30,000

Excess reserve = $75,000

Explanation:

Given:

Required reserve ratio = 0.20

Check able deposit = $150,000

Outstanding loans = $45,000

Computation:

Reserves = Check able deposit - Outstanding loan

Reserves = $150,000 - $45,000

Reserves = $105,000

Required reserve = Check able deposit[Required reserve ratio]

Required reserve = $150,000[0.20]

Required reserve = $30,000

Excess reserve = Reserves - Required reserve

Excess reserve = $105,000 - $30,000

Excess reserve = $75,000

3 0

3 years ago

On the date of purchase, Skywalker's inventory and buildings and equipment had fair values of $255,000 and $870,000, respectivel

Whitepunk [10]

Answer:

Inventory to be shown in balance sheet = $955000

<u>Explanation:</u>

According to the given data:

Fair value of Skywalker’s inventory = $255000

Fair value of Skywalker’s buildings and equipment is = $870000

Calculation of amount to be reported for inventory in consolidated balance sheet is as follows:

Inventory = ($700000 + $255000)

= $955000

Note: Inventory of parent company and subsidiary company is to be added in preparing consolidated balance sheet

7 0

3 years ago