Answer:
INCOME EFFECT
Explanation:
Income Effect means change in real income/ purchasing power due to change in price, income staying same.
- Price Increase reduces real income/ purchasing power, income staying same - because consumer can purchase less from same income.
- Price decrease increases real income/ purchasing power, income staying same - because consumer can purchase more from same income.
Eg: Income, price of a consumer = Rs100, Rs10 respectively.
Real Income = Income/price = 100/10 = 10. Price fall to 8 increases purchasing power to 12.5 (100/8). Price rise to 12 decreases purchasing power to 8.3 (100/12).
Income Effect : stating - lower purchasing power at higher prices, reduces consumption of all goods and higher purchasing power at lower prices, increases consumption of all goods.
A rent ceiling set below the equilibrium rent creates a situation in which the quantity demanded of housing is greater than quantity supplied.
<u>Option: C</u>
<u>Explanation:</u>
Rent limit is the highest price a property owner can demand for rent. Rent ceilings are typically fixed by legislation and limit how high the rent can be in a given area. Although, the amount of affordable housing is also reduced as a consequence of this rule, as tenants are not interested in renting out their properties at a cheap price.
Nevertheless, if the limit is placed underneath the level of equilibrium then a reduction of deadweight is produced. Many issues come in the form of illegal markets, scanning time and charges that aren't leased precisely like key money i.e. high initial cost for new keys.
Arianne's store is an example of a SOLE PROPRIETORSHIP.
A sole proprietorship is the simplest business form among all businesses. It doesn't have a legal entity because its debts will be personally covered by its owner. All its profit and loss will be enjoys and paid for by Arianne and the coverage of its debts is unlimited.
Answer:
A. Cash 960
Service Revenue 960
Explanation:
In the given transaction, the trade discount is not shown in the recording of the journal entry but the effect is to be seen in the journal entry.
Since the cash is paid for providing the service and give the patient a 20% discount.
So, the discount amount would be equal to
= Service cost × discount rate
= $1,200 × 20%
= $240
And, the journal entry would be shown below:
Cash A/c Dr $960
To Service Revenue $960
(Being service is provided for cash and discount is given)
