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Daniel [21]
3 years ago
6

Rob consumes two goods, x and y. He has an allowance of $50 per week and is not endowed with either of the goods. If the price o

f good x increases and his substitution and income effects change demand in opposite directions.
a. good x must be a Giffen good.
b. good x must be an inferior good.
c. WARP is violated.
d. good x must be a normal good.
e. There is not enough information to judge whether good x is a normal or inferior good.
Business
1 answer:
anzhelika [568]3 years ago
5 0

Answer:

B

Explanation:

Inferior good is a good whose demand decreases when income increases

The substitution effect looks at the change in price of a good relative to other goods.  When the price of good x increases, rob should increase consumption of good y and reduce that of good x if it were a normal good

The income effect looks at how a change in price affects real disposable income

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The beginning inventory at Midnight Supplies and data on purchases and sales for a three-month period ending March 31, are as fo
agasfer [191]

Answer:

Using LIFO:

TOTAL Sales : $19,875,500

COGS = $11,021,250

GROSS PROFIT = $8,853,750

Explanation:

KINDLY CHECK ATTACHED PICTURE

4 0
3 years ago
Baseball Corporation is preparing its cash budget for January. The budgeted beginning cash balance is $19,500. Budgeted cash rec
Mice21 [21]

Answer:

$12,500

Explanation:

Budgeted cash receipts refer to the money that the company expects to receive in a specific period of time.

Budgeted cash disbursements are the payments that the company expects to make in a specific period of time.

$19,500+190,500-191,000= 19,000

Then, you have to subtract 19,000 from 31,500 to determine the amount that the company needs to attain its desired ending cash balance:

31,500-19,000= 12,500

According to this, the company should borrow $12,500.

4 0
3 years ago
Sparks Fireworks manufactures and sells fireworks. Their raw materials used is $71,500. Their beginning raw materials inventory
algol13

Answer:

The correct answer would be, $70500

Explanation:

Raw Material Turnover means what amount of raw materials is used within a specific period of time. So the raw material turnover would be calculated by adding the beginning inventory with the amount of material used within the period, and then the remaining material will be deducted. So the whole calculations are shown as follows:

Beginning Raw Material Inventory: $5000

Raw Material Used:                $71500

Ending Raw Material Inventory:    $6000

Raw Material Inventory Turnover:

Beginning Inventory + Raw Material Used - Ending Raw Material

= 5000+71500-6000= $70500

7 0
3 years ago
A corporation has 40,000 shares of $25 par value stock outstanding. If the corporation issues a 4-for-1 stock split, the number
Olegator [25]

Based on the information given the number of shares outstanding after the split will be: 160,000 shares.

Using this formula

Outstanding shares=Current shares  outstanding × Number of the split

Where:

Current shares  outstanding =40,000 shares

Number of the split =4

Let plug in the formula

Outstanding shares=40,000 shares×4

Outstanding shares=160,000 shares

Inconclusion the number of shares outstanding after the split will be: 160,000 shares.

Learn more here:

brainly.com/question/14652555

4 0
3 years ago
At the end of its first year of operations, Eagle Manufacturing has a deductible temporary difference of $100,000. Eagle has inc
Sunny_sXe [5.5K]

Complete question:

At the end of its first year of operations, Eagle Manufacturing has a deductible temporary difference of $100,000. Eagle has income taxes payable of $90,000 due to a tax rate of 20%. Eagle also recorded a deferred tax asset. Later, they determined that it is more likely than not that $15,000 of the deferred tax asset will not be realized. What entry should Eagle make to record the reduction in asset value?

A. Allowance to Reduce Deferred

Tax Asset to Expected Realizable

Value 15,000

Income Tax Expense 15,000

B. Income Tax Expense 15,000

Deferred Tax Asset 15,000

C. Income Taxes Payable 15,000

Income Tax Expense 15,000

D. Income Tax Expense 15,000

Allowance to Reduce Deferred

Tax Asset to Expected Realizable

Value 15,000

Answer:

Income Tax Expense = 15,000

Allowance to Reduce Deferred

Tax Asset to Expected Realizable

Value 15,000

Explanation:

A book value decrease decreases the valuation of the book asset when changes in the asset or the dynamics of the market have decreased its present market value.

Reduction of book value is a non-cash charge listed as an expense, which decreases net profit.

In this case , Option D entry should Eagle make to record the reduction in asset value

i.e,  Income Tax Expense                                        15,000

                     Allowance to Reduce Deferred

                     Tax Asset to Expected Realisable

        Value                                                                  15,000

3 0
3 years ago
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