The law of supply says that when the price of service or a good increases, the quantity of service or a good that the suppliers offer will increase.
The law of supply is a micro-economic law. It states that, suppliers will attempt to maximize their profits by increasing the number of goods available for sale if the price of an item rises. If consumer demand increases over time, the price will also increase. In this situation, suppliers can choose to devote new resources to production and even new suppliers can enter the market, which increases the quantity of goods.
In a competitive market, suppliers response to the price determines the price, which in return determines the quantity to be supplied. The law of supply explains how market economies distribute resources and exercise control by combining the law of demand.
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Answer:
Financial accounting is the aspect of accounting that is concerned with the summary, analysis and reporting of financial transactions related to a business.
While managerial accounting is the aspect of accounting that is concerned with the identification, measurement, analysis, and interpretation of accounting information to help managers plan for the future, make decisions for the company, and determine if their plans and decisions were accurate and efficient.
1. Helps Creditors make lending decisions is related Financial Accounting.
2. Helps in planning and controlling operations is related to Managerial Accounting.
3. Is not required to follow GAAP is related to Managerial Accounting.
4. Has a focus on the future is related to Managerial Accounting.
5. Summary reports prepared quarterly or annually is related to Financial Accounting.
Answer: <em><u>Share price = = 34.09</u></em>
Explanation:
Given: Discount rate = 8.4 %
Cash flows Year Discounted CF Cumulative cash flow
- 0 - -
1461000 1 1347785.98 1347785.98
1680150 2 1429846.75 2777632.73
1932172.5 3 1516903.84 4294536.56
2221998.38 4 1609261.45 5903798.01
2555298.13 5 1707242.31 7611040.33
44392891.26 5 29659718.18 37270758.51
where;
Discounted CF =
∴Share price = = 34.09
<em><u>Share price = = 34.09</u></em>
Answer:
an inflationary spiral is likely to occur
Explanation:
If the government uses its stabilization policies to maintain full employment under conditions of cost-push inflation: "an inflationary spiral is likely to occur."
Given that the cost-push inflation is a form of inflation in which prices of commodities increases as a result of wages and raw materials cost increase, and stabilization policy is a means by which the government tend to sustain economic development with little changes in price.
Hence, when stabilization policy is used to maintain full employment under conditions of cost-push inflation there is a high tendency to result in a continuous rise in prices due to the cost of wages and materials increase.