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aalyn [17]
2 years ago
12

If the economy goes into a recession and incomes fall, what happens in the markets for inferior goods?.

Business
1 answer:
Paraphin [41]2 years ago
5 0

When there is a recession and a fall in income, in the markets for inferior goods, demands increase.

<h3>What are inferior goods?</h3>

Inferior goods are goods whose demand falls when income rises and increases when income falls.

<h3>What is a recession?</h3>

A recession is when there is a negative gross domestic product for four consecutive periods. When there is a recession, there is a decline in productivity in the economy.

To learn more about inferior goods, please check: brainly.com/question/15901212

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On March 1, Lincoln sold merchandise on account to Amelia Company for $27,300, terms 1/10, net 45. On March 6, Amelia returns me
xenn [34]

Answer:

Explanation:

The journal entries are shown below:

Accounts receivable A/c Dr $27,300

              To Sales A/c $27,300

(Being goods are sold on credit)

Sales return and allowance A/c Dr $3,000

              To Accounts receivable $3,000

(Being sales return is recorded)

Cash A/c Dr                   $24,057

Sales Discount A/c Dr $243

     To  Accounts receivable    $24,300

(Being cash received recorded)

The computation of the account receivable  

= Credit sales - returned goods

= $27,300 - $3,000

= $24,300

And, the discount would be

= Accounts receivable × percentage given

= $24,300 × 1%

= $243

The remaining amount would be credited to the cash account.

8 0
3 years ago
The AFN equation assumes that the ratios of assets and liabilities to sales remain constant over time. However, this assumption
Vera_Pavlovna [14]

Answer:

The answer is A True

Explanation:

AFN which is "additional funds needed" is a concept used commonly in business looking to expand operations and influence. Since a business that seeks to increase its sales level will require more assets to meet that stated goal, some provision must be made to accommodate the change in assets. AFN is a way of calculating how much of new funds will be needed, so that the firm can realistically look at whatever or not they will be able to generate the additional funds and therefore be able to achieve the higher sales level.

Economies of scale are cost advantage reaped by companies when production becomes efficient. Firms can achieve economies of scale by increasing production and lowering cost. This does not involve calculating of new funds needed for a realistic expansion of the firm.

Lumpy assets are assets that cannot be acquired in small increments but must be obtained in large, discrete units.

Excess Capacity indicates to a situation in which the demand for a company's goods and services is less than its production capacity. This situation can arise in any firm during  the low point in a seasonal industry, where capacity is maintained to match the peak part of the season.

A constant ration can not be meet in this condition of economies of scale, lumpy assets, and excess capacity as these conditions  can not be used in raising funds or additional funds that are needed by the industry in its expansion.

8 0
3 years ago
Failing to respond to the needs of internal customers will diminish the confidence these users have in purchasing, and they may
Solnce55 [7]

Answer:

The correct answer is Maverick buying.

Explanation:

Maverick, is a wayward, a dissident, a rebel, someone who refuses to abide by the rules or resists joining a group. The term originates from Samuel A. Maverick (1803-1870), a Texas rancher, who refused to mark his cattle.

The "maverick buying", refers to purchases out of contract or channels established by an organization. For example, the Corporate Supply department negotiates a competitive price for certain particular models of laptops with a distributor. Days later, someone from the Human Resources department requests the purchase of a much more expensive model, for which a discount has not been negotiated.

Another example: traveling in an airline and staying in a hotel other than those with which the company has signed agreements.

The impact of bypassing the preferred purchasing channels and systems can vary from operational inefficiency, to missing out on the advantages of corporate contract negotiation, large fines and even jail time.

4 0
3 years ago
Cartels control the production and pricing of goods mainly through
Lubov Fominskaja [6]

Answer:

the elimination of competition

Explanation:

8 0
3 years ago
The demand curve has what kind of slope?
Leto [7]

It is a graph that shows the relationship between the quantity demanded of a commodity at different prices over a given period of time. It is observed that the demand curve slopes downward from left to right. It shows it has a negative slope which implies that consumers purchase more of commodity at lower prices than at higher prices.

Hope this helps and pls give me brainliest

8 0
3 years ago
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