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2 years ago

What might cause a demand curve to shift to the right?

Business

1 answer:

dolphi86 [110]2 years ago

6 0

Answer:

D. An increase in the price of a substitute

Explanation:

<h2>Law of Demand</h2>

The law of demand states that as the price of a product of good <u>rises</u>, the <em>quantity demanded </em>for that good or product <u>falls</u>; conversely, if the price of a product or good <u>falls</u>, then the <em>quantity demanded</em> for that good <u>rises</u>.

Given the inverse relationship between the price of a good and the quantity demanded for that good, then its graph will show a <em>downward-sloping</em> demand curve.

A <u>change in demand</u> represents the leftward- or rightward-shift of the entire demand curve. This may be caused by the following factors:

Changes in the income of buyers

Changes in consumers' preferences,
A change in the price of related goods (<em>substitutes</em> and <em>complements</em>),
Number of buyers within a market, and
The buyers' expectation on the future prices of goods.

<h3>Types of Related Goods: </h3>

<u>Substitutes</u>: two similar goods that fulfill about the same needs or wants of the buyers.

Examples of substitute goods: Coca-Cola and Pepsi, butter and margarine.

<u>Complements</u>: these are two goods that are consumed together. When the price of one good goes up, the demand for the complement good declines.

Examples of complements: Tennis racket and tennis ball, ink cartridge and printers.

<h2>Answer:</h2><h3><u>Substitute goods:</u></h3>

If the price of one good rises, then the buyers will demand more of the substitute good with a lower price. This causes a rightward-shift on the demand curve of that substitute good.

This description matches <u>Option D</u>: an increase in the price of a substitute.

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1 year ago

Omar and Janet are also trying to forecast what their federal and state income taxes will be at the end of the year. If Rings an

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Answer: This was the best answer I could come up with. Its probably wrong but whatever! :P

They will determine their income taxes based on their positive cash flow of $1,000.00 per month. This is because this cash flow spans across more months than their negative cash flow of -$150.00 per month. Expenses that could be used for their tax deductions is sales tax.

Explanation:

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3 years ago

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Heller Corporation has aged its accounts receivable and estimated uncollectible accounts as follows (in thousands). Age of Recei

MariettaO [177]

Answer:

$368

Explanation:

Bad debts also known as uncollectible expenses are the portion of the accounts receivable in accrual accounting that have to be written off as they are eventually not paid by the accounts receivable.

One of the ways of estimating bad debt is allowance method , which is expressing a bad expenses as a percentage of credit sales based on experience and past records.

Days past due balance % uncollectible

Current 11,000 1% 110

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3 years ago

The following information is available for the first year of operations of Creston Inc., a manufacturer of fabricating equipment

zysi [14]

Answer:

(a) $921,100

(b) $643,500

Explanation:

(a) Cost of goods sold:

= Sales - Gross profit

= $1,261,800 - $340,700

= $921,100

(b) Direct Material Cost:

= Materials purchased - Indirect materials - Materials inventory

= $643,500 - $46,700 - $46,700

= $643,500

= Total manufacturing costs for the period - Direct materials - factory overhead (Indirect labor + Indirect materials + Other factory overhead)

= $1,393,000 - $643,500 - $181,800

= $567,700

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3 years ago

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Explanation:

Annuity is a stream of equal cash flows that has a specified number of periods. To get the payoff amount for living in the house for 12 years, we calculate the present value of the annuity.

The payoff amount for living in the house for 12 years is $129,931.24.

Check the attached document for the calculation.

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