Answer: Market allocates goods effectively.
Explanation: Effective market allocation is the economic market interaction discussed in this case study. As there was a storm and the power lines got down it was obvious that the demand for the batteries and flashlights will increase and the stock became insufficient but the market forces came into action leading to increase in supply and restoring demand and supply to equilibrium level .
Answer:
Income +/- inventory adjustment
2015: 138,000 - 23,000 = 115,000
2016: 254,000 + 61,000 = 315,000
2017: 168,000 + 17,000 = 185,000
Explanation:
<u>Inventory Identity:</u>
Beginning + Purchases = Ending + COGS
As the mistake is on the right side it compensates by the other component which is COGS
<u><em>When the inventory is overstated</em></u> this means COGS is understated.
We didn't record the cost of good sold thefore our gross profit is higher making the net income higher.
<u><em>When the inventory is understated</em></u> this means COGS is overstated.
We record more cost of goods sold thefore our gross profit is lower making the net income fewer as well.
Answer:
Needs, wants, and ability to purchas
Explanation:
There is no reason to focus on consumer needs thousands of years ago. But we can say that technological advances and communication are wreaking havoc in this regard. Trends and fashions mark each day more than we want to obtain, consume and buy. And that has multiplied by a thousand in the last hundred years
Answer:
25th house's Marginal cost is $250,000.
Explanation:
Given:
Total cost of 24 houses = $4,800,000
Total cost of 25 houses = $5,050,000
Marginal cost = ?
Computation of marginal cost:
Marginal cost = Change in total cost
Marginal cost = Total cost of 25 houses - Total cost of 24 houses
Marginal cost = $5,050,000 - $4,800,000
Marginal cost = $250,000
So, we say that 25th house's marginal cost will be $250,000 .
Answer:
The correct answer is option A.
Explanation:
High inflation will cause an adverse effect on the exchange rate. However, the low inflation rate does not have a positive effect on the value of currency and exchange.
Inflation rate affects the rate of interest which has an effect on the exchange rate. The relationship between the interest rate and inflation is complex and difficult to manage.
Lower interest rates are likely to lower the cost of borrowing. As a result, there is an increase in investment and production. This increases aggregate demand and thus price level.
But lower interest discourages foreign investment, the demand for domestic currency falls.This shift the currency demand curve to left decreasing the interest rate.
