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2 years ago

With an aim of a diagram, distinguish between the income effect and substitution effect of change in price of a normal good

1 answer:

4 0

Hello. You did not present a diagram to which the question refers. However, I will try to help you in the best possible way.

The income effect is the term related to the increase or decrease in the consumer's purchasing power in relation to the fluctuation in the price of consumer products and the value of the national currency. On the other hand, the substitution effect refers to the impact between the variation of the consumers' income value and the product's prices.

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The NASDAQ is a floor-based exchange. t or f

Olegator [25]

False. NASDAQ has no physical trading floor because all of the stocks are pretty much made electronically.

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2 years ago

Mustang Corporation had 100,000 shares of $2 par value common stock outstanding. On December 31, 2015, the company's board of di

faust18 [17]

Answer:

The journal entry will be as follow:

Dec 31th

Retained Earnings 200,000 debit

Stock Dividends Payable 200,000 credit

to record declared stock dividends

Jan 20th

Stock Dividends payable 200,000 debit

Common Stock 40,000 credit

Additional paid-in 160,000 credit

Explanation:

The company will issue 20% stock

100,000 shares x 20% = 20,000 shares

The company cost for this 20,000 will be the market value

20,000 shares x $10 = 200,000

This will be compare with the face value of the shares to calculate the adidtional paid-in:

20,000 sahres x $2 face value = 40,000 common stock

200,000 market value - 40,000 face value = 160,000 additional paid-in

The journal entry will be as follow:

Dec 31th

We declare the dividends against retained earnings, from there we will take the funds to pay the dividends

Jan 20th

The dividends will be paid with common stock so we write-off the dividdends payable again the issued stock and their aditioanl paid-in.

3 0

2 years ago

Read 2 more answers

Brenda has been trying to lose weight and control her seemingly insatiable sweet tooth. to meet her goal, she has removed all co

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Brenda is practicing stimulus control

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3 years ago

How do you calculate the variable cost?

NikAS [45]

Calculate total variable cost by multiplying the cost to make one unit of your product by the number of products you've developed. For example, if it costs $60 to make one unit of your product, and you've made 20 units, your total variable cost is $60 x 20, or $1,200.

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2 years ago

True Tomato Inc. makes organic ketchup. To promote its products, this firm decided to make bottlesin the shape of tomatoes. To a

Fittoniya [83]

Answer:

3) physical-asset specificity

Explanation:

In a business to business relationship, physical asset specificity refers to an asset, or product or service designed to fit a particular or specialized customer's need.

In this case, True Tomato needs a very specific type of bottle that probably no other ketchup manufacturer may use or want to use. So their bottle supplier specifically manufactures the tomato shaped bottle to meet True Tomato's specific requirements.

5 0

2 years ago

With an aim of a diagram, distinguish between the income effect and substitution effect of change in price of a normal good​

With an aim of a diagram, distinguish between the income effect and substitution effect of change in price of a normal good