Answer And Explanation:
a) Quantity of chocolate demanded by consumers will decrease
This is because there is a minimum price which makes product more expensive. The higher the price, the less the quantity demanded
b) Quantity of chocolate supplied by producers will increase
This is because price has increased with the government's price floor. The higher the price, the higher the quantity supplied.
c) Quantity of chocolate purchased by the government will increase
This is because there is surplus supply and therefore government would need to buy more to support the price floor and buy leftover chocolates in the market
Answer:
B. Escalator Clause
Explanation:
An escalation clause is a clause in a lease or contract that guarantees a change in the agreement price once a particular factor beyond control of either party affecting the value has been determined. An important example of this is a contract that adjusts for inflation.
Answer:
the average cost to reduce
Explanation:
In this situation, when The All-terrain Bike Company increases input (capital and labor) and this causes a proportional increase in output, this scenario The All-terrain Bike Company experiences is called a constant returns to scale which gives rise to decreased average costs.
This happens because buying larger quantity of inputs gives rise to a reduced cost of purchase because these things are being bought in bulk.
Answer:
B. price ceiling.
A government policy that sets the highest price that can be charged for a good or service is a price ceiling.
Answer:
$1,125,000
Explanation:
Given;
Gain from asset disposal = $225,000
Book value of asset disposed = $900,000
Therefore,
Amount of cash received from the sale = $900,000 + $225,000
= $1,125,000
This represents an inflow of cash and will be represented by a positive value in the statement of cash flows. The total amount reported in the cash flows from investing activities section of the statement of cash flows is $1,125,000
