1. The substitution effect is the change in the quantity demanded of a good that results from a change in price making the good more or less expensive relative to other goods, holding constant the effect of the price change on consumer purchasing power.
2. The income effect causes quantity demanded to increase when the price of a normal good decreases, and causes quantity demanded to increase when the price of an inferior good decreases.
Explanation:
The quantity change required this because a rise in the market price of goods leads to a shift in relative prices, which causes consumers to exchange sales with one commodity. This is one of two factors or consequences that underlie the demand rule and the negative curve of the market demand. The second is the impact of profits.
The tax increase is the result of a change in the price of production that impacts the buying power of a specific income level. The adjustment in buying power then results in a necessary supply shift and demand shift. Price changes and revenue are set with the income effect.
Answer:
a. True
Explanation:
A law can be defined as the system of principles, regulations and rules established by legislature, that is adopted in a community, society or country to regulate the actions of its citizens, members or employees.
The law is a tool used by individuals, organizations, and even government to ensure everybody is well behaved, non-criminal and civil in their actions.
The law creates the foundation for ethical behavior.
In circumstances where there are aberration, the law is enforced as a punishment and penalty.
Hence, compulsory school attendance laws and the great expenditures for education both demonstrate our recognition of the importance of education to our democratic society.
I think it is false hopefully it is right
Answer:
an understatement of assets and an understatement of revenues.
Explanation:
Financial accounting is an accounting technique used for analyzing, summarizing and reporting of financial transactions like sales costs, purchase costs, payables and receivables of an organization using standard financial guidelines such as Generally Accepted Accounting Principles (GAAP). Examples of financial statements includes Balance sheet, cash-flow and income statement.
Financial reporting can be defined as the formal communication or disclosure of financial information and statements to present and potential users such as investors and creditors.
Hence, failure to prepare an adjusting entry at the end of a period to record an accrued revenue would cause an understatement of assets and an understatement of revenues.
Answer:
It will extend the loan for 15.83 months = 16 more months.
Explanation:
We need to calcualte the difference in time between one option and another:
Original Loan:
C $310.00
time n
rate 0.0064583 (0.0775annual rate / 12 month per year)
PV $9,800
We rearrenge and solve as much as we can:
Now, we solve using logarithmics properties:
35.47385568
Now we calcualte with the new terms:
C $225.00
51.30909653
Last step, we solve for the difference:
51.30 - 35.47 = 15.83 = 16 more months
