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3 years ago

How does a subsidy provided for a good affect consumers?

Business

1 answer:

Orlov [11]3 years ago

7 0

Answer: D. It increases consumers’ incomes and encourages consumers to buy the good

Explanation:

A subsidy is an amount of money that is given by the government to producers or farmers so as to increase the production of a particular good and also to reduce the price of the good.

Subsidies affect consumers as it increases consumers’ incomes and encourages consumers to buy the good. This is because the subsidized goods will be sold at a cheaper price which means that the income of the consumer is increased and also encourages more purchases of the good.

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Carlos Ramirez and Camila Garza organized New World Book Store as a corporation; each contributed $70,900 cash to start the busi

kvasek [131]

Answer:

Net Income = $28,070

Explanation:

As for the provided details:

Balances as on December 31, 2014

Cash = $70,050

Accounts Receivables = $40,000

Inventory = $77,000

Total Assets = $187,050

Accounts Payable = $13,600

Note Payable = $3,400

Interest payable = $180

Total Liabilities = $17,180

Common Stock = $70,900 + $70,900 = $141,800

Retained earnings = $28,070

Total Stockholder's Equity = $169,870

Total of Equity and Liabilities = $187,050

Now, since it is the first year of operations, the balance of retained earnings in beginning = $0.

Also no dividend is paid, therefore, net income for the year shall be

Opening Retained Earnings + Net Income - Dividend = Closing Retained Earnings

$0 + Net Income - $0 = $28,070

Thus, Net Income = $28,070

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3 years ago

In order for information to be meaningful, a firm’s accounting processes and procedures should be certified as accurate by accep

kipiarov [429]

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4 years ago

Alyssa owns and operates a store in a country experiencing a high rate of inflation. In order to prevent the value of money in h

artcher [175]

Answer:

It is an example of the shoes leather costs.

Explanation:

Shoe leather cost is the cost which involve the time as well as the efforts which people spend on trying to counter-act the inflation effects like holding less amount of cash and make additional trips to the bank.

In this scenario, Alyssa in order to protect herself from the effect of the inflation, she sends employee to bank for depositing the money into the bank four times a day. Therefore, it is an example of Shoe leather cost

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4 years ago

Elevator speech is another term for

Fynjy0 [20]

Answer:

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3 years ago

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In terms of GNI PPP, excluding Singapore, the wealthiest nations of Southeast Asia are

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3 years ago