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2 years ago

Which of the following correctly describes how price adjustments eliminate a shortage?

Business

1 answer:

vampirchik [111]2 years ago

8 0

Answer:

As the price rises, the quantity demanded decreases and the quantity supplied increases.

Explanation:

When a shortage occurs, demand for a product is high and is not being matched by supply (supply is low).

So to bring demand down and increase supply, we need to increase the price.

According to the law of demand and increase in price results in a decrease in demand.

The law of supply states that when price increases there will be an increase in supply, making more goods available and eliminating shortage.

This is illustrated in the attached diagram.

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On July 1, Year 1, Yellow Rose Corp. paid $25,000 cash for a machine and paid an additional 8% sales tax. On the same date, an e

Lina20 [59]

Answer:

Journal entries are given below

Explanation:

July 1, Year 1 (Yellow Rose Corp. purchased a machine)

DEBIT CREDIT

Machine $28,000

Cash $28,000

Working

Cost of machine = Purchase price + Sales tax + Installation

Cost of machine = $25,000 + $2,000 + $1,000

Cost of machine = $28,000

Depreciation for year 1 (October to December)

DEBIT CREDIT

Depreciation Expenses $1,300

Accumulated Depreciation $1,300

Working

Annual Depreciation expense = (Cost - salvage value) / useful life

Annual Depreciation expense = (28000 - 2000) / 5 = $5,200

Depreciation for 3 months

Depreciation = $5,200 x 3/12

Depreciation = $1300

Sale of the machine

DEBIT CREDIT

Cash $14,000

Loss on Sale $7,500

Accumulated Depreciation $6,500

Machinery $28,000

Workng

Gain/Loss on sale = Sale proceed - carrying value

Gain/Loss on sale = 14,000 - 21,500

Loss on sale = $7,500

Carrying value = Cost - Accumulated depreciation

Carrying value = 28,000 - 6500 = 21500

Accumulated depreciation = $1,300 + $5,200 = $6,500

7 0

2 years ago

The renewal probability is assumed to be 60% for a particular lease with 12 months vacant if the lease is not renewed. The expec

RUDIKE [14]

Answer:

(A) 4.8 months

Explanation:

After the expiration of a lease, a maximum of one third allowance is usually given.

Therefore, The expected vacancy at the end of this lease can be calculated as follows:

The expected vacancy = 60% × 12 × (2 ÷ 3) = 4.8 months

Therefore, the expected vacancy at the end of the lease is 4.8 months.

6 0

2 years ago

Based on the lesson and your research, how would you fund a four-year college degree? In two to three sentences, explain your ch

LekaFEV [45]

You can fund a four-year college degree by either of the following:

1. Loans
Loans can be acquired through federal aid or private means. They must be paid back with interest when the student has graduated. They are guaranteed by the federal government.

2. Scholarships
Scholarships depends on criterias from who will sponsor it. These criterias may include financial need, merits, field of study, etc. There are those who can help students look for a scholarship that fit them like counselors, the government or its agency, community organizations, etc.

3. Work-study programs
They operate with the financial aid office of the school. However, they require the student's determination and financial needs.

9 0

2 years ago

Read 3 more answers

What statements best describe a store charge card?

Aloiza [94]

redit card
In general, a credit card lets you make purchases for which you are billed later. Most credit card accounts allow you to carry a balance from one billing cycle to the next. However, you will usually have to pay interest on that balance. You likely also have to pay at least a certain amount of your balance each time you receive a bill.

Charge card
A charge card is a specific kind of credit card. The balance on a charge card account is payable in full when the statement is received and cannot be rolled over from one billing cycle to the next. American Express and Diner's Club are two well-known organizations that offer charge cards.

So what does this mean for your FICO® score? There are many ways to build one's FICO score over time. Credit cards in general have a strong influence on the FICO score calculation. Charge cards can be just as effective as any other credit product in helping consumers establish a credit history.

Whether you have a credit card or a charge card, the most important factor in building or improving your FICO score is using credit responsibly. That means paying your bills on time and using your credit only when needed. If you can do those things consistently, you should be well on your way toward maintaining a good score.

3 0

2 years ago

Consider a market for a specific kind of used cars, say 2009 Honda Civic. Suppose that in use these cars have proved to be eithe

const2013 [10]

Answer:

a. What will be the market price for a Civic? Which cars will be traded?

market price = $6,400
all cars would be traded since the market price exceeds the selling price of peaches (and lemons).

b. What will be the market price for a Civic in month 1? Which cars will be traded?

market price = $6,080
all cars would be traded since the market price exceeds the selling price of peaches (and lemons).

c. What will be the market price for a Civic in month 2? Which cars will be traded?

market price = $5,760
only lemons would be traded since the market price exceeds the selling price of lemons but not peaches.

Explanation:

month 0

buyers expected cost:

peaches $8,000 x 60% = $4,800

lemons $4,000 x 40% = $1,600

total expected cost = $6,400

sellers expected price:

peaches $6,000

lemons $4,000

month 1

buyers expected cost:

peaches $7,600 x 60% = $4,560

lemons $3,800 x 40% = $1,520

total expected cost = $6,080

sellers expected price:

peaches $5,900

lemons $3,900

month 2

buyers expected cost:

peaches $7,200 x 60% = $4,320

lemons $3,600 x 40% = $1,440

total expected cost = $5,760

sellers expected price:

peaches $5,800

lemons $3,800

8 0

2 years ago