George Stigler is a known American economist and according to his theory the Consumer theory, he quoted that <span>“if consumers do not buy less of a commodity when their incomes rise, they will surely buy less when the price of the commodity rises.” This means that when consumers do not purchase a certain product even if their incomes increases, that is considered normal, but when the product increases in value, we can expect that these consumers will buy less of the product.</span>
Answer:
generally you need to determine the cost per unit, but in this case you are given a percentage of depletion = 10% x $225,000 = $22,500 which determines the inventory value (or depletion expense if the timber is sold) during the year.
the journal entry should be:
December 31, 20xx
Dr Timber inventory 22,500
Cr Accumulated depletion - timber tract 22,500
Answer: Option (B) is correct.
Explanation:
Correct Option: Resources to the highest value good or service.
Prices normally are able allocate scarce resources efficiently because they will allocate resources in a better way, so that there can be a full utilization of resources.
If the resources are used efficiently and effectively then this will lead to an optimal utilization of the limited resources.
