Answer:
A. Set above equilibrium price
Explanation:
A price ceiling is a mandatory maximum price that a seller is allowed to charge. Generally, a government may impose this in order to protect consumers, especially with regards to the purchase of essential goods.
If the price ceiling was set below the equilibrium price (option c) or if the equilibrium price is above the price ceiling (option b), it will immediately cause a shortage (option d) since the quantity demanded would be higher than the quantity supplied when the price falls. This is because people will be willing to purchase more since it is cheaper but suppliers will be willing to produce less due to lower profits. Hence, options b, c and d are eliminated.
Option A is correct because... (please refer attached diagram):
When the price ceiling is above the equilibrium price, suppliers are willing to supply more since they can make higher profits but consumers will reduce purchasing since it is expensive. However, it does not cause any immediate effect because it takes time for suppliers to be able to produce more and cannot be done immediately unless anticipated in advance. In the long run however, quantity demanded will fall from equilibrium quantity to D1 and quantity supplied will rise from equilibrium quantity to S1. Hence, causing a surplus between D1 - S1 in the long run.
Answer:
The cost of goods sold = $74,000
Explanation:
<em>Cost of goods sold is computed as</em>
<em>Opening stock + production- closing inventory</em>
<em>The figure is always subtracted from the sales revenue to determine the gross profit</em>
The cost of goods of XXis Corporation
Cost of goods sold = 19,000 + 70,000 - 15,000
= $74,000
The cost of goods sold = $74,000
Answer:
Option A is correct
Explanation:
The 2 Option are:
<em>i. The firm Delta Insurers typically affirms claims within 120 days after it receives proof of loss statements
</em>
<em>ii. The firm Delta Insurers typically denies claims within 120 days after it receives proof of loss statements.</em>
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Delta insurance company is a typical insurance company that operates it business in line with the Insurance practice code in its operation country. Failure of perform those duties strictly will lead to revoke of operational license which will incur consequential loss for the Insurance Company.
Delta Insurers insures against peril of Vehicle, Fire, Burglary, Consequential loss, Business Interruption and so on.
The insurer however have its own mode of settling claims as stated in the Policy form. The statement might be stated in there that "<em>we typically affirms claims within 120 days after we receives proof of loss statements". </em>No insurer can states in its policy form that "<em>we typically affirms claims within 120 days after it receives proof of loss statements", t</em>his is against the code of conduct of Insurance business
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Answer:
By how much are customers paying early or late?
Explanation:
Days sales outstanding (DSO) represents the average number of many days it takes a business to collect its accounts receivables.
DSO = (accounts receivables / total credit sales) x 365 days
DSO = ($60,000 / $325,000) x 365 days = 67.38 days
customers are paying late by 67.38 days - 45 days = 22.38 days
Answer:
.4
Inelastic
Explanation:
Elasticity of Demand = |%Change in Demand / %Change in Price|
%Change in Demand= |(40,000 - 50,000)/50,000| = 20%
%Change in Price = |(60 - 40)/40| = 50%
Elasticity of Demand = .2/.5 = .4 or 40%
.4 < 1 so Demand is Inelastic
