The item that has many close substitutes tend to have an elastic demand since this means that the consumers have a lot of variations to choose from. This makes the demand for the item very dependent on the number of consumers this item caters. The more substitutes mean more competition, more choices for the consumers, less demand for a particular item.
Answer:
1. $1000 (sale price) - $800 (Dealer price) = $200
2. $200 * 10 sculptures = $2000 of total value added
Explanation:
STEPS
1)The artist pays $5,000 for the intermediate goods (scrap metal) and sells the finished goods (10 sculptures) for $1 comma 1,000 each.
The value added for the artist equals $3000
2)The art dealer pays $800 for the intermediate goods (sculptures) and sells the finished goods (sculptures) for $1000 each. Calculate the difference between the price the dealer paid for the sculptures and the amount for which the dealer sold the sculptures.
3) $1000 (sale price) - $800 (Dealer price) = $200
4) $200 * 10 sculptures = $2000 of total value added
Answer:
a. Issued for Cash = ($312,000 * 12/12) + ($29,700 * 8/12)
= $312,000 + $19,800
= $331,800
b. Issued in a stock dividend: Shares issued in the stock dividend are assumed outstanding from the beginning of the year
= ($312,000 * 12/12) + ($29,700 * 12/12)
= $312,000 + $29,700
= $341,700
Answer:
B. Debit to cash short and over $16
Explanation:
The total entry to replenish the cash would be:
office supplies. 73
cash short and over 16
Cash. 89
Answer:
the money supply increase in response to a $1 billion increase in excess reserves for the whole banking system is $6.67billion.
Explanation:
Increase in money supply = 1/0.15
Increase in money supply = $6.67 billion
Therefore, the money supply increase in response to a $1 billion increase in excess reserves for the whole banking system is $6.67billion.
