When there is a surplus of goods and the government does not intervene to stabilize prices, the prices will keep dropping in an effort to sell the good off.
According to the Law of Supply and demand:
- prices drop when the supply of a good is more than the demand to encourage people to buy more of the goods.
This will be done in an effort to at least recuperate some of the costs of production instead of suffering a total loss when people don't buy the goods as is the case with these holiday toys.
We can therefore conclude that if the government does not intervene to either subsidize the price of these toys or control their price, the prices will keep falling to entice people to buy the goods.
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Answer:
b. $6,000
Explanation:
Depreciation is calculated on the cost of asset. Cost of asset includes the transportation and installation cost, because both are necessary in order to function the asset.
Accordingly total cost of asset = $40,000 + $1,000 = $41,000
Salvage value = $5,000
Thus, amount to be depreciated = $41,000 - $5,000 = $36,000
Useful life of the asset = 6 years
Straight line depreciation = $36,000/6 = $6,000 annually.
Answer: The answers are given below
Explanation:
An intermediate target is a variable this isn't controlled directly under the central bank, but one that has a quick response to policy actions. e.g money supply.
A policy instrument is a tool used to manipulate a variable in the economy and achieve a desired objective. e.g. tax rates, interest rates, subsidies etc.
a. The ten-year Treasury bond rate
It is an intermediate target because isn't controlled directly under the central bank but can be linked to an activity in the economy.
b. The monetary base
This is a policy instrument because used to manipulate a variable in the economy and achieve a desired objective.
c. Ml
This is an intermediate target as it cannot be affected directly by the Federal tools.
d. The fed funds rate
This is a policy instrument as it can be affected directly by Fed tools.
<span>A price elasticity of infinity corresponds to a demand curve that is horizontal. That would be considered perfectly elastic, and in a perfectly elastic demand situation something can sell as much as much as it wants as consumers are ready to purchase a large quantity of product.</span>
Answer:
1. Based on the information given WFI transaction is a taxable transaction which include a recognizes gain of the amount of $40,000 on the transfer of the building as.well as gain of the amount of $60,000 on the transfer of the land.
2. Shauna will recognizes gain of the amountc of $150,000 on the transfer of her stock made to WFI calculated as ($200,000 - $50,000) .
Explanation:
1. Based on the information given WFI transaction is a taxable transaction which include a recognizes gain of the amount of $40,000 on the transfer of the building as.well as gain of the amount of $60,000 on the transfer of the land.
2. Shauna will recognizes gain of the amount of $150,000 on the transfer of her stock made to WFI calculated as ($200,000 - $50,000) .
