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2 years ago

Consider again the price control described in the last question. Let's assume that the price control

1 answer:

3 0

If it is a binding price floor, when the law is repealed, quantity demanded increases and quantity supplied decreases.

If it is a binding price ceiling, when the law is repealed, quantity demanded decreases and quantity supplied increases.

<h3>What is a price floor and a price ceiling?</h3>

A price floor is when the government sets the minimum price of a product. A price floor is binding if it is set above equilibrium price.

Price ceiling is when the government sets the maximum price for a product. It is binding when it is set below equilibrium price.

To learn more about price floor, please check: brainly.com/question/26551616

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3 years ago

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Change in accounting estimate

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A change in accounting estimate occurs when there is new information that surfaces, affecting the initial situation. It can affect the carrying amount of an asset or liability as well as alter the accounting for existing and future assets or liabilities.

The machine has a cost of $800,000. It is depreciated using the straight-line method of depreciation. Hence, the depreciation expense is the same annually throughout the life of the asset.

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