Suppose that a natural disaster substantially increase the cost of producing cheese, we would predict that the equilibrium quantity of cheese will decrease and the equilibrium price of cheese will increase because natural disasters can have a negative effect on the supply of the cheese. So, using the supply and demand curve, this will cause the supply to shift left while making demand curve steady since the effect will be on the supply part and not affecting the demand of the cheese.
Answer:
The law of supply reflects the amount that producers will want to offer at each price in a series of prices.
Explanation:
The law of supply determines that the quantity offered of a good increases as its price increases, keeping the remaining variables constant. The quantity offered is directly proportional to the price.
Specifically, it determines the amount of a particular good or service that is offered by the producers taking into account its price. Usually the relationship between this quantity and the price variable will be direct or positive, unlike in the demand law.
Answer:
Db Accounts Payable or Cash____900
Cr Inventory account__________________900
Explanation:
The journal entry would be: If merchandise is returned to a supplier, a debit is made to Accounts Payable or Cash, and a credit is made to the Inventory account.
Answer and Explanation:
The journal entry is shown below:
Bad debts expense Dr $60,000
To Accounts receivable $60,000
(Being the written off amount is recorded)
For recording this we debited the bad debt expense as it increased the expenses and credited the account receivable as it reduced the assets
So for correcting posting and recording we passed accurate entry
Answer:
Given that,
Current exchange rate between India and U.S :
1 Dollar = Rs. 58
Exchange rate between India and U.S a year ago :
1 Dollar = Rs. 55
Above information conclude that the currency of India depreciates whereas currency of united states appreciates.
This is due to the increase in the exchange rate in India. Now, a dollar become more expensive than it a year ago.
So, the Indian rupee depreciated and U.S dollar appreciated.
