Answer:
Usually, when a price ceiling is imposed, the demand for the product goes up. This can cause a shortage of products because of their high-demand. Conversely, the opposite occurs when a price floor is imposed.
Answer:
-0.523 and inelastic
Explanation:
The computation of the price elasticity of demand using mid point formula is given below:
= (change in quantity demanded ÷ average of quantity demanded) ÷ (percentage change in price ÷ average of quantity demanded)
where,
Change in quantity demanded is
= Q2 - Q1
= 150 units - 200 units
= -50 units
And, average of quantity demanded would be
= (150 units + 200 units ) ÷ 2
= 175 units
Change in price would be
= P2 - P1
= 3,500 - 2,000
= 1,500
And, average of price would be
= (3,500 + 2,000) ÷ 2
= 2750
So, after solving this, the price is -0.523
Since the price elasticity of demand is less than 1 so it would be inelastic
Answer:
Debit Accounts Receivable—Valley Spa $10,438 Credit Interest Revenue $238
Credit Notes Receivable $10,200.
Explanation:
Preparation of the the journal entry to record the dishonored note
Debit Accounts Receivable—Valley Spa $10,438
($10,200+$238)
credit Interest Revenue $238
($10,200 x 14% x 60/ 360)
Credit Notes Receivable $10,200
(To record the dishonored note)
Answer:
separate-but-equal doctrine
Explanation:
The separate-but-equal doctrine was upheld as constitutional in the US since according to this doctrine, racial segregation didn't violate the Fourteenth Amendment to the Constitution because colored people received the same service as white people.
The Fourteenth Amendment guaranteed equal protection for everybody, in this case it guarantees equal service.
Answer: Option (B) is correct.
Explanation:
Correct option: product differentiation.
In a monopolistic competitive market, there are large number of sellers which are producing similar products or close substitute but the products are different enough that the demand curve for each firm is downward sloping.
The firms in a monopolistic competitive market have zero economic profit in the long run because of the less restrictions on the entry and exit of the firms.
