Answer:
The historical cost of the debt securities available for sale was $69,670.
Explanation:
Market value of the securities = $57,320
Cumulative unrealized Loss = $12,350
Historical cost of the securities held for sale = Market Value of the Securites + Cummulative unrealized losses
Historical cost of the securities held for sale = $57,320 + $12,350
Historical cost of the securities held for sale = $69,670
Securities Held for sale are recorded at the fairmarket value and its losses are accumulated. By adding cummulative losses of security to Maerket value of security we can calculate historical cost of the security.
Answer:
The correct answer is option b.
Explanation:
A steep demand curve implies that the demand is relatively inelastic. In other words, a significant change in price will cause a small change in the quantity demanded.
A flatter demand curve, on the contrary, implies that a small change in price will cause a greater change in quantity demanded. In other words, demand is relatively elastic.
A change in price will not cause demand to change if the elasticity of demand is perfectly inelastic or when the demand curve is a vertical line.
A change in demand will be equal to the change in price if demand is unitary elastic.
Answer:
The correct answer is: demand curve; option C.
Explanation:
A price floor is the lowest limit fixed on the price of a product. It is imposed by the government to protect the producers.
A binding price floor is fixed above the equilibrium market price. It is a horizontal line above the equilibrium price.
The consumers are willing to purchase the quantity where the price floor intersects the demand curve.
There is an excess supply as firms supply more at a higher price while the consumers demand less.
Since there is a difference between the equilibrium price and what the consumers are willing to pay, there exists a deadweight loss. This deadweight loss is the triangular area below the demand curve and above the supply curve between equilibrium quantity and price floor quantity.