Answer:
The correct answer is letter "D": There will be downward pressure on the prices.
Explanation:
Price floors are the minimum legal prices that buyers are expected to pay for a product. These prices are usually set by law with the intervention of the government. In the case the price floor is removed, the price tendency is to go down since as there is no minimum price anymore, buyers could take advantage of the situation to offer less money for the same product.
Answer:
yes it does
Explanation:
It's because without capital you can't even start the business, because you wouldn't have the machines or computers and stuff that is needed for your business. So it' used to pay ongoing production of goods and services to make profit form your business
The franchisor is a party granting rights.
Answer:
A price ceiling is a bar on the legal maximum price a commodity can be sold for while a price floor is the least legal price a commodity can go for.
The price ceiling is always greater than the price floor in this case it is not so, hence the price floor is not binding to the price ceiling.
the statements below is analyzed under price ceiling and price floor according to whether it is binding or nonbinding.
Explanation:
1. Due to new regulations, donut shops that would like to pay better wages in order to hire more workers are prohibited from doing so.
Statement one is neither a price ceiling nor a price floor and it is nonbinding
2. The government has instituted a legal minimum price of $1.80 each for donuts.
Statement two is a price floor and it is binding.
3. The government prohibits donut shops from selling donuts for more than $1.10 each.
Statement three is a price ceiling and it is binding.
Answer:
$237
Explanation:
From the information given
Using FIFO perpetual inventory method, we have
(8 × 11) + (11 × 10) + (3 × 13)
= 88 + 110 + 39
= 237
Therefore, cost of 22 units sold is $237
Note: FIFO perpetual inventory method is a cost flow tracking system where the first unit of inventory acquired is the first unit of inventory sold. So in this case, we calculated the cost of the first 22 unit acquired.
