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3 years ago

What is the difference between inflation and deflation.

Business

2 answers:

tino4ka555 [31]3 years ago

7 0

Answer:

D. Inflation can result from rising demand and reduces the value of money. Deflation can result from falling demand and boost the value of money.

Explanation:

Inflation is the general increase in prices in the economy over time. As the economy grows, prices automatically rise. There is a direct correlation between economic development and inflation. A high growth rate may result in a high inflation rate. High growth is caused by an increase in demand for goods and services.

Inflation erodes the purchasing power of money. As prices increase, it means one unit of money will purchase fewer quantities of goods and services than the previous season.

Deflation is the opposite of inflation. It means a general decline in prices in the country. Low production due to reduced demand causes prices to decline. One unit of money will purchase more quantities of goods and services as prices decline.

igor_vitrenko [27]3 years ago

7 0

Answer:

I believe the answer is D :)

Explanation:

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Answer:

$57,600

Explanation:

The computation of the total amount paid to preferred shareholders are shown below:

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= $57,600

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3 years ago

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Oksanka [162]

I think the answer is D

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2 years ago

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Thepotemich [5.8K]

C. partnership
the answer will be c because more then one person comes in hand with partner

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3 years ago

If the demand curve for a life-saving medicine is perfectly inelastic, then a reduction in supply will cause the equilibrium pri

never [62]

Answer:

If the demand curve for a life-saving medicine is perfectly inelastic, then a reduction in supply will cause the equilibrium price to <u>rise and the equilibrium quantity to stay the same</u>.

Explanation:

Perfectly inelastic demand curve indicates the quantity demanded for the life-saving medicine remains the same or does not change in response to a change in price.

Since a part of the law of supply states that the lower the quantity supplied, the higher the price; a reduction in the supply of the life-saving medicine will increase its price.

The combining effect of the two above will lead to an increase in the equilibrium price while the equilibrium quantity will remain the same as it will not respond to the change in price.

The attached graph explains this more clearly. In the graph, the demand curve DD is used to represent the perfectly inelastic demand curve for the life-saving medicine. Therefore, the quantity remains at q no matter the changes, either increase or decrease, in price. Movement from the supply curve S1 to S2 indicates a reduction in supply of the life-saving medicine which causes an increase in the equilibrium price from Po to P1 while the equilibrium quantity stays at q.

This therefore shows that if the demand curve for a life-saving medicine is perfectly inelastic, then a reduction in supply will cause the equilibrium price to <u>rise and the equilibrium quantity to stay the same</u>.

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3 years ago

During the month of June, Ace Incorporated purchased goods from two suppliers. The sequence of events was as follows: June 3 Pur

Alinara [238K]

Answer and Explanation:

The journal entries are shown below:

On June 3

Merchandise Inventory $4,100

To Accounts payable $4,100

(Being the purchase of goods on credit is recorded)

On Jun 5

Accounts payable $1,100

To Merchandise Inventory $1,100

(To record purchase returns)

On June 6

Merchandise Inventory $1,000

Accounts payable $1,000

(Being the purchase of goods on credit is recorded)

On June 11

Accounts payable ($4,100 - $1,100) $3,000

To Cash $2,960

To Inventory ($4,100 - $1,100) × 2% $60

(Being the payment is recorded)

On June 22

Accounts Payable $2,000 ($3,000 - $1,000)

To Cash $2,000

(Being the payment on account in full is paid)

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4 years ago