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3 years ago

) A price change would have the largest income effect on a A) magazine. B) tablet computer. C) piece of clothing. D) car.

Business

1 answer:

weeeeeb [17]3 years ago

7 0

Answer:

Explanation:

A change in price leads to two effects :

The income effect
The substitution effect

The income effect is the change in quantity demanded as a result of a change in real income which affects the consumes purchasing power.

A car constitutes a very large part of a consumers expenditure due to its cost. Thus, the income effect for a car would be the largest

The substitution effect is the change in demand as a result of change in the price of the good compared to the price of another substitute good.

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A 30-unit income-producing property has a sales price of $9 million. Annual gross income is estimated at $750,000. What's the gr

Cloud [144]

Answer:

Explanation:

Given that,

Sales price = $9 million

Estimated annual gross income = $750,000

The gross income multiplier is defined as the ratio of sales price to its effective gross income.

Therefore, the gross income multiplier is calculated as follows:

= (Sales price ÷ Estimated annual gross income)

= $9,000,000 ÷ $750,000

= 12

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3 years ago

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garri49 [273]

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3 years ago

How does competition influence the price of a good to either purchase or produce

Elan Coil [88]

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6 0

3 years ago

Nishi Corporation prepares financial statements for each month-end. As part of its accounting process, estimated income taxes ar

choli [55]

Answer:

1. $4,100

2a. Dr Income tax Expense $4,100

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Cr Cash $33,926

Explanation:

1. Calculation to Determine the amount of the accounting adjustment

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Less: Unadjusted balance in Income tax payable account $29,826

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2a. Preparation of journal entries to record December 31

Adjustment to the Income as on Dec 31

Dr Income tax Expense $4,100

Cr Income tax payable $4,100

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January 20 payment of the fourth-quarter taxes.

Dr Income tax payable $33,926

Cr Cash $33,926

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3 years ago

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lukranit [14]

Answer:

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Cr Bed debts expense 70,000

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Dr Cash 70,000

Cr Accounts receivable 70,000

(Cash is an asset and when it increases, it is debited. Accounts receivable is an asset and when it decreases, they are credited)

8 0

3 years ago