Answer:
The correct word for the blank space is: lower; buyers to offer higher prices.
Explanation:
In a market driven by supply and demand laws, shortages are caused because of excess in demand as a result of lower prices. Thus, that price is lower than the equilibrium price. Besides, if there is a need to push that price to its equilibrium level, sellers will have to increase the price implying buyers will have to offer higher prices.
Answer:
The correct answer is option d.
Explanation:
The marginal benefit of another T-shirt is $15. The price of the T-shirt is $10.
The marginal cost is equal to the price, so it is also $10.
The marginal benefit earned from the T-shirt is greater than the marginal cost incurred on a T-shirt.
According to economic reasoning, it is profitable to buy another T-shirt. So, Mary will buy another T-shirt this month.
Answer:
The journal entries are given;
Explanation:
a. Bad Debt Expense Dr.$17,300
Allowance for Doubtful Accounts Cr.$17,300
b. Allowance for Doubtful Accounts Dr.$7,100
Accounts Receivable Cr.$7,100
With Bad Debt Expense ,the retained earnings will be decreased by ($17,300)
with direct written off,the accounts receivables will be reduced by ($7,100) in balance sheet.
Answer:
A business can improve its average contribution ratio and its overall profitability, by shifting its sales mix to include more products with high contribution margin ratios.
In this case American steel company shift in product mix is due to a higher proportion of export sales. This shift caused to decline net income of the company. This is because the contribution margin ratio on export sales may lower than the other product mix. So, the shift of product mix to low contribution sales will cause to decline the net income.
