Answer:
The demand of a product may increase due to several factors, including a decrease in the product's price, an increase in the price of the competition (substitute products), a decrease in the price of complement, or an increase in consumer income.
The company can only control the price they charge for the product, but they do not control the other external factors. If the supplier is able to increase the quantity supplied, the equilibrium price might not vary at least in the short run. If the external factors continue then the equilibrium will probably increase.
If the quantity demanded for Colgate increases, but the supplier is not able to increase the quantity supplied, then the equilibrium price will increase due to a shortage of the product.
Answer:
b. $358,500
Explanation:
Given;
Retained Earnings at December 31, 2018 = $300,000
In 2019,
Revenue = $600,000
Expenses = $525,000
Declared and paid dividends = $16,500
Retained earnings on the balance sheet as of December 31, 2019
= $300,000 + $600,000 - $525,000 - $16,500
= $358,500
The right option is b. $358,500
Answer:
Suppose there is an individual who needs a certain level of income, I°, in order to stay alive. An increase in income above that level of income I° will have a diminishing marginal utility. Below I°, the individual will be a risk lover and will take unfair gambles and risks in an effort to make large gains in income. Above I°, the individual will purchase insurance against losses.
