Answer:
c. greater than the price effect.
Explanation:
The output effect represents higher revenue due to a larger quantity supplied, while the price effect results in lower revenue due to an decrease in price resulting from an increase in quantity supplied. As the quantity supplied increases, the equilibrium price decreases. A firm will sell more units if the output effect is higher and offsets the price effect.
Answer: The loss that will be reported in the income statement for the sale of the machine is $2,000.
Explanation: The cost of the machine is $12,000 while the accumulated depreciation is $9,000. This means the net book value (NBV) of the machine is $3,000 ($12,000 - $9,000). To calculate the gain or loss on the sale of the machine, we have to compare the sales proceed to the NBV. If the sales proceed is greater than the NBV, we have a gain. Otherwise, we have a loss by the difference. <u>In this instance, there is a loss on the sale transaction of $2,000 ($1,000 - $$3,000).</u>
Answer:
Insurable interest
Explanation:
The insurance interest is the interest of the insurer while taking the policy so that the risk of the loss is reduced also it is an important requirement that makes the firm or the event to be legal, valid, enforceable, and protected against any harmful acts done intentionally
Therefore according to the given situation, the concept in which enough interest must exist on the part of the insurer while taking the policy is known as the insurer interest
Hence, the first option is correct