Equilibrium can only occur at one price. two prices. three prices. four prices.
Assume the market for spiral bound notebooks is in equilibrium. All students in public schools need notebooks of some type when they attend classes. For each of the following, explain the possible effects on demand and/or supply and equilibrium price and quantity of spiral bound notebooks using a correctly labeled supply and demand graph with equilibrium price and quantity labeled. Under your hand-drawn graph, list the determinant of supply and/or demand that causes each shift as well as the change in price and quantity. a) The price of natural gas, a resource used by manufacturers throughout the United States, doubles. b) The government provides a subsidy for notebook manufacturers. c) Your income increases and spiral bound notebooks are an inferior good.
b) In theory, the subsidy reduces the cost per unit to the manufacturer, which increases supply and often reduces price, again being a supply-side determinant. In reality, it creates an incentive for notebook manufacturers to keep doing what they are doing, disincentivizing cost-saving developments and alternatives. Why innovate when you can get free government cheese?
Anyway, supply determinant.
c) The price of an inferior good increasing tends to push some demand for superior goods, especially when the income to cost of good ratio remains the same for the inferior good but gets better for the superior one. Demand determinant.
Imagine that the interest rate on your savings account is 1 percent a year and inflation is 2 percent a year. After one year, would the money in the account buy more than it does today, exactly the same or less than today? More than it does today Less than today Exactly the same If interest rates rise, what will typically happen to bond prices? Rise, fall, stay the same, or is there no relationship? Stay the same Fall No relationship Rise
If interest rates rise, bond prices will fall. They have an inverse relationship.
The price of a certain type of wine depends on its age, described by the function price(age), what can be said about this function? Check all that apply. A. Price is the independant variable. B. Price depends on age. C Age is the input variable. D. Age is the independant variable.
Select all the items that describe a free market economy. limited selection of goods and services freedom for consumers and producers competition between businesses distribution by price motivated by self-interest
- Freedom for consumers and producers
- Distribution by price
- Motivated by self-interest
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Which of the following could be considered an advantage of the price system? A.The government benefits because the price system doesn't account for the cost of public goods. B.The environment benefits because the price system doesn't account for the cost of externalities. C.Markets benefit because the price system can be unstable. D.Producers and consumers benefit because the price system provides incentives in the marketplace.
The correct answer is D. Producers and consumers benefit because the price system provides incentives in the marketplace. Hope this helps
In economics, if a good is inelastic, consumers have lost an interest in purchasing it. producers have lost an interest in manufacturing it. its supply or demand is too sensitive to price changes. its supply or demand is not sensitive to price changes.
In economics, if a good is inelastic, then its supply or demand is not sensitive to price changes.
Changes or fluctuations in market prices does not affect the supply and the Demand of inelastic goods.
- Inelastic goods, are types of goods whose demand and supply is not affected by changes in market prices. That is an increase or decrease in market price does not affect their supply or demand.
- When the price of an inelastic good changes, its supply and demand is unaffected.
- Examples of such goods include, water and food. Therefore, for inelastic goods, the consumer buying strength and habits remain the same.
Demand and supply in determination of market price
- Demand refers to the quantity of goods or services that consumers are willing and able to buy at a particular price while supply is the quantity of goods or services that suppliers are willing to supply to the market at a particular price.
- One of the factor that determine market prices are the forces of demand and supply, this is based on the ability and willingness of buyers and sellers to undertake selling and buying.
- Buying and selling occurs at an equilibrium price that is agreed upon by sellers and buyers.
- This means the sellers and buyers are willing to exchange a certain quantity of a commodity at this price. Thus, price depends on the demand and supply in the market.
- However, for inelastic goods such as water and food, the consumer has no option than to buy them at existing prices since they are necessity goods.
Keywords; Inelastic goods, demand and supply, market price.
Learn more about:
- Demand and supply; brainly.com/question/6749722
- Effect of supply and demand on market price: brainly.com/question/3522474
Level; High school
Topic: Demand and supply
Sub-topic: Types of goods
The loan principle amount is the amount of money borrowed for the loan. Making the down payment 1) proves the creditworthiness and capability of the buyer and 2) the overall amount of money to payback.
The government has set a price floor on bread. Manufacturers cannot sell loaves for less than $5.00, which is a dollar above the market price. What will most likely result from this price control? The demand for bread will fall, which could result in an excess supply. The demand for bread will rise, which could result in an excess supply. The demand for bread will fall, which could result in a decreased supply. The demand for bread will rise, which could result in a decreased supply.
Which phrase best describes the income effect ?A. the effect of demand and supply on income earned by producersB. the impact of price on consumers' purchasing ability and decisions C. the increased income earned by suppliers because of high pricesD. the impact of consumers' income on the supply of a product
Which of the following describes a situation where you would most likely choose passive income over another type of income? a. A very successful band wants to record a song you wrote. You can sell the rights to the song or keep the rights and collect a percentage of the price of each compact disk sold. b. You own a home. You can sell it now to make a profit or you can rent it out for a year, giving the renter the option to buy it for the balance owed. c. The stocks you own go up and down in value, but are now up. You can keep the stocks and collect any monthly dividends or sell them for all for profit now. d. Your company offers you two options of how you can be paid. You can be paid an annual salary or an hourly wage.
Passive income is earnings that an individual derives from a rental property, limited partnership or other enterprise in which he or she is not materially involved.
1. Which of the following is a reason that your company might not want to increase its market share? A. The market saturation for your product is low. B. Many of your company's competitors have bad reputations. C. Your company has a limited capacity for producing your product. D. The price of your product is very competitive. 2. As a factor of production, how is capital created? A. By adding land to entrepreneurship B. By adding human labor to land C. By removing land from services D. By using labor to create services
2. B. By adding human labor to land
According to how much people buy a product, and how much of that product there is, prices are going to be established accordingly.
23-20 (Objectives 23-3, 23-4) The following are misstatements that might be found in the client’s year-end cash balance (assume that the balance sheet date is June 30): 1.The outstanding checks on the June 30 bank reconciliation were underfooted by $2,000. 2.A loan from the bank on June 26 was credited directly to the client’s bank account. The loan was not entered as of June 30. 3.A check was omitted from the outstanding check list on the June 30 bank reconciliation. It cleared the bank July 7. 4.A check was omitted from the outstanding check list on the bank reconciliation. It cleared the bank September 6. 5.Cash receipts collected on accounts receivable from July 1 to July 5 were included as June 29 and 30 cash receipts. 6.A bank transfer recorded in the accounting records on July 1 was included as a deposit in transit on June 30. 7.A check that was dated June 26 and disbursed in June was not recorded in the cash disbursements journal, but it was included as an outstanding check on June 30. Required a.Assuming that each of these misstatements was intentional (fraud), state the most likely motivation of the person responsible. b.What control can be instituted for each fraud to reduce the likelihood of occurrence? c.List an audit procedure that can be used to discover each fraud. 14-26 (Objectives 14-3, 14-4, 14-5) The following are commonly performed tests of controls and substantive tests of transactions audit procedures in the sales and collection cycle: 1.Account for a sequence of shipping documents and examine each one to make sure that a duplicate sales invoice is attached. 2.Account for a sequence of sales invoices and examine each one to make sure that a duplicate copy of the shipping document is attached. 3.Compare the quantity and description of items on shipping documents with the related duplicate sales invoices. 4.Trace recorded sales in the sales journal to the related accounts receivable master file and compare the customer name, date, and amount for each one. 5.Examine sales returns for approval by an authorized official. 6.Review the prelisting of cash receipts to determine whether cash is prelisted daily. 7.Reconcile the recorded cash receipts on the prelisting with the cash receipts journal and the bank statement for a 1-month period. Required a.Identify whether each audit procedure is a test of control or a substantive test of transactions. b.State which of the six transaction-related audit objectives each of the audit procedures fulfills. c.Identify the type of evidence used for each audit procedure, such as inspection and observation.
He most likely used the money he withdrew and later replaced it with his own money.
b.What control can be instituted for each fraud to reduce the likelihood of occurrence?
Bank records can be used to cross check the checks that were released.
c.List an audit procedure that can be used to discover each fraud.
Bank records have to be referred to when doing audit procedures.
a.Identify whether each audit procedure is a test of control or a substantive test of transactions.
Steps 2,5, and 6
b.State which of the six transaction-related audit objectives each of the audit procedures fulfills.
Steps 3,4, and 5
c.Identify the type of evidence used for each audit procedure, such as inspection and observation.
Observation were used in steps 2,5,6 and inspection were used in 3,4,5.
In terms of the law of demand, which of the following is said to occur when the price of a good increases? Answer The quantity demanded remains the same. The quantity demanded increases. The quantity demanded decreases. There is no affect on the quantity demanded.
Which benefit of the American Free Enterprise System is best represented by the following statement? "American consumers are kept from purchasing products that could cause them serious injury or illness." Answer Economic Freedom Variety of Goods Government Protection Responsive Prices
1.The hope of reward that encourages a person to behave in a certain way is a(n) _______. 2.A bridge is an example of something that is usually provided as a _________. 3.To show how demand for a good will change at specific price points, economists use a ____.
1. The hope of reward that encourages a person to behave in a certain way is a(n) INCENTIVE.
2. A bridge is an example of something that is usually provided as a PUBLIC GOOD.
3. To show how demand for a good will change at specific price points, economists use a MARKET DEMAND SCHEDULE.
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Why would businesses supply more product at higher prices? A. Businesses need to sell more or they will waste money on shelf space. B. Consumers buy more with higher prices. C. Businesses will increase production to make more profit. D. Consumers are willing to pay more as supply increases.
Businesses would supply more product at higher process so that C. businesses will increase production and make more profit. If a business could make more products and sell them, they are able to make more profit off of what they are selling however, if thsoe products aren't moving, they would be wasting production time and losing money. For a business to create more, they need to be profitable in what they are increasing and how many labor hours they are using.
What might cause a consumer to have an elastic demand for a product? A. The product isn't a necessity. B. The product was produced outside of the United States. C. The product is priced at $5. D. The product is a necessity.
2. A company's board of directors votes to declare a cash dividend of $.80 per share of common stock. The company has 16,000 shares authorized, 11,000 issued, and 10,500 shares outstanding. The total amount of the cash dividend is: $11,800. $12,800. $8,400. $17,200. $8,800. 3. The following data has been collected about Keller Company's stockholders' equity accounts: Assuming the treasury shares were all purchased at the same price, the number of shares of treasury stock is: 43,000. 65,000. 18,000. 10. 3,800. Torino Company has 1,800 shares of $10 par value, 5.0% cumulative and nonparticipating preferred stock and 18,000 shares of $10 par value common stock outstanding. The company paid total cash dividends of $500 in its first year of operation. The cash dividend that must be paid to preferred stockholders in the second year before any dividend is paid to common stockholders is: $1,800. $400. $500. $1,300. $900. Carducci Corporation reported Net sales of $3.54 million and beginning Total assets of $0.96 million and ending Total assets of $1.36 million. The average Total asset amount is: $0.35 million. $2.58 million. $0.27 million. $2.18 million. $1.16 million