Response:
Refer to the explanation section
Clarification:
The disparity between the inventory count recorded and the actual count suggests that the goods in stock have either been sold or lost. For the sake of ongoing operations, it is presumed they have been sold. Accordingly, the journal entry to document the sale is -
December - 31 Cost of goods sold Debit 45,000
($415,000 - $370,000)
Merchandise Inventory Credit 45,000
(To record the sale of merchandise: adjusted)
Answer: The result is -2.42
Explanation:
P1 = $4 Q1 = 800
P2 = $4.50 Q2 = 600
Applying the midpoint formula, we calculate:
For price:
P2 - P1/(P2 + P1)/2
= 4.5 - 4/(4.5 + 4)/2
= 0.5/4.25
= 0.12
For quantity:
Q2 - Q1/(Q2 + Q1)/2
= 600 - 800/(600 + 800)/2
= -200/700
= -0.29
The price elasticity of demand is calculated as change in quantity/change in price
= -0.29/0.12
= -2.42.
Answer:
The right answer is: price elasticity of supply and demand.
Explanation:
A tax of $4 per unit on automobile tire supply has been enacted by the government. Suppliers are responsible for this tax. Importantly, the outcome will remain unchanged regardless of whether the burden is on the buyer or the seller. Enforcing this tax will result in a rise in the commodity's price.
The distribution of the tax burden between buyers and sellers directly correlates with demand and supply elasticity. If demand is significantly more elastic relative to supply, suppliers will carry a larger portion of the tax burden, and vice versa.
