Accrual net income is $192,600. Accrual net income is a measure of a company's financial performance that reflects the revenues and expenses it has earned or incurred during a specific period of time, such as a month or a year.
How to find Accrual net income ?To calculate accrual net income, we need to consider the company's revenues and expenses for the year, including any prepaid expenses or accounts receivable.
Based on the information provided, the company's total revenues for the year were $360,000.
Its total expenses = $44,000 for rent
Employee salaries = $124,000
$54,000 for utilities
for a total of $222,000.
The company had prepaid rent of $22,000 (half of the total rent payment), which should be subtracted from its expenses. It also had accounts receivable of $64,000, which should be added to its revenues.
Finally, we need to adjust for any outstanding liabilities. The company had a liability to the gas and electric company of $2,400, which should be subtracted from its expenses.
With all of these adjustments, the company's accrual net income for the year is calculated as follows:
Revenues: $360,000
Expenses: $222,000
Prepaid rent: -$22,000
Accounts receivable: $64,000
Outstanding liabilities: -$2,400
Accrual net income: $192,600
complete question:
Cash flows during the first year of operations for the Harman-Kardon Consulting Company were as follows: Cash collected from customers, $360,000; Cash paid for rent, $44,000; Cash paid to employees for services rendered during the year, $124,000; Cash paid for utilities, $54,000.
In addition, you determine that customers owed the company $64,000 at the end of the year and no bad debts were anticipated. Also, the company owed the gas and electric company $2,400 at year-end, and the rent payment was for a two-year period. Calculate accrual net income for the year.
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AAA, Inc. has two categories of overhead: maintenance and inspection. Costs expected for these categories for the coming year are as follows:
Maintenance $320,000
Inspection $160,000
The following data have been assembled for use in developing a bid for a proposed job:
Direct materials $2,400
Direct labor $6,400
Machine-hours 160
Number of inspections 2
Direct labor-hours 320
The practical capacity of machine-hours for all jobs during the year is 10,000, and for inspections is 320. These are the cost drivers for maintenance and inspection costs, respectively.
Using the appropriate cost drivers, the total cost of the potential job is:
Select one:
a. $8,800
b. $14,920
c. $29,840
d. $13,040
Answer:
A training session doesn't match the requested one the employees some
Explanation:
photo Deewar
What is the significance of having short-term investments?
A company usually has short-term investments because it can
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these investments into cash quickly if it faces a cash
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Answer: The answer for the first box is Convert and the second is Crunch.
Explanation: I took the test and got it right
a. when addressing a negative externality associated with the use of a commodity (e.g., energy), it is more efficient to impose a pigouvian tax on households but not on firms, because taxes on firm inputs disturb production efficiency
When producers do not bear the full cost of output, negative externalities impede a market economy from attaining equilibrium, according to Pigou.
it is more efficient to impose a pigouvian tax on households
A Pigovian Tax: What Is It?
A tax levied against private individuals or companies for engaging in activities that have negative side effects for society is known as a Pigovian (sometimes spelled Pigouvian) tax. Adverse side effects are expenses that are not accounted for in the market price of the product. The selling of tobacco products puts a load on the public healthcare system, and any other side effects that have an adverse external effect are among them.
After English economist Arthur Pigou, who made a substantial contribution to the early externality theory, Pigovian taxes were given their name.
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Orange and Billsung both produce smartphones and are considering increasing the rates on their data plans. Assume that each firm has complete knowledge of the other's payoff for a given decision. The payoff matrix represents the payoffs to each firm, where Orange values are in bold and Billsung values are in italics. The decision tree assumes Billsung chooses its strategy first. Use this information to complete the statement. Increase rates Increase rates $40 million $40 million $45 million $35 million Keep current rates $35 million $45 million $25 million $25 million Keep current rates Increase rates Billsung $40 million Orange $40 million Increase rates Keep current rates Billsung $35 million Orange $45 million Increase rates Billsung $45 million Orange $35 million Van rant ratas Increase rates Billsung $40 million Orange $40 million Increase rates Keep current rates Billsung $35 million Orange $45 million Increase rates Billsung $45 million Orange $35 million Keep current rates Keep current rates Billsung $25 million Orange $25 million Billsung will choose to increase rates and Orange will increase rates. 7 keep current rates. keep current rates increase rates. increase rates 7.
Bill Sung will decide to preserve the present rate, while Orange will opt to raise the rate, in accordance with the supplied statement.
What do statistics call rates?Last but not least, a rate is an more broad measurement that involves dividing two values, neither of which must use the same measure unit. It is capable of being equal to just about any value, including a negative one. It can even be expressed as both an integer or a percentage, much like proportions.
Briefing:(i). Bill sung → increase rate → orange → increase rate (40m, 40m)
From Orange → keep current rate (35m, 45m)
(ii). Bill sung → keep current rate → orange → keep current rate (25m, 25m)
From Orange → increase rate (45m, 35m)
Orange will opt to raise the rate, while Bill Sung may choose to preserve the present rate.
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cognitive engagement process of quickly arranging the information that we select to pay attention to, noticing different aspects of an encounter.
Yes ,The Statement is Correct. A cognitive investment in learning, effortful task completion with purpose and the application of strategies, as well as metacognition and self-regulated learning are all examples of cognitive engagement.
What is Cognitive engagement?Cognitive engagement is the act of paying continuous, focused attention to an activity that requires mental effort and falls within the learners' zone of proximal development. As a result, when their pupils are actively involved in cognitively challenging learning, teachers perform at their best.
Cognitive engagement is the act of paying continuous, focused attention to an activity that requires mental effort and falls within the learners' zone of proximal development.The degree to which a student is strategically thinking, questioning, creating, and modifying in order to gain new information, develop, and comprehend their environment is reflected in cognitive engagement (Cognitive Processing).here are some of the cognitive engagement strategies used among students
Input Cognitive Strategies.
A cognitive input method depends on the things that students pay attention to. Most teachers overestimate how much attention students pay to the learning experience's instructional goals (the teacher's lecture, for instance). In addition to having short attention spans, students divert their focus by choosing to do so or by engaging in other activities.
Process Cognitive Strategies. A process cognitive strategy helps learners make sense of what they learn
Output Cognitive Strategies.
By applying what they have learned and making sense of their experiences, learners might gain new knowledge or skills with the use of an output cognitive approach. Giving students the opportunity to teach about a subject they are interested in learning.
Feedback Cognitive Strategies
By providing feedback to others, learners can use cognitive techniques to gain new information or abilities. As an illustration, invite students to listen to a speech or sermon and then give another student input on how it was delivered.
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Which of the following is the most effective control procedure to detect vouchers that were prepared for the payment of goods that were not received?
Count goods upon receipt in storeroom.
Match purchase order, receiving report, and vendor's invoice for each voucher in accounts payable department.
Compare goods received with goods requisitioned in receiving department.
Verify vouchers for accuracy and approval in internal audit department.
Option (b), The best control method to identify vouchers produced for the payment of products that were not received is to match each voucher with the purchase order, receiving report, and vendor's invoice.
How are the vendor invoice and the related receiving report matched with the purchase order?Three-way matching involves comparing purchase orders (PO), goods receipt notes, and supplier invoices in order to detect fraud, save money, and maintain accurate records for the audit trail. The supplier is often paid after delivery but before three-way matching is completed.
Does the invoice need to match the PO?The sole invoice that is approved for payment must therefore match the PO, the goods receipt, the tolerances, and the inspection slip. These invoice matching techniques ensure that companies only pay for the goods and services they have requested and received.
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which of the following transactions would not appear on the cash flow statement? which of the following transactions would not appear on the cash flow statement? the purchase of land for stock the issuance of a bond payment of cash dividends equipment is purchased for cash all of the above would appear on the cash flow statement
The correct assertion is the buy of land for stock.
At times, companies enter into investing and financing transactions that do no longer contain cash, such as issuing frequent stock to buy land. These transactions are now not pronounced on the announcement of money flows due to the fact they do no longer supply or use cash.
What is cash flow?Cash go with the flow is a measure of how lots money a business brought in or spent in total over a length of time. Cash float is commonly broken down into cash drift from running activities, investing activities, and financing activities on the statement of money flows, a frequent monetary statement.
What is cash flow announcement in simple words?A cash float assertion is an necessary device used to control budget by means of tracking the money go with the flow for an organization. This declaration is one of the three key reviews (with the income declaration and the balance sheet) that help in deciding a company's performance.
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https://brainly.com/question/10922478#SPJ4When considering the most typical research design, although the practiced limb should show the greater amount of improvement, a significant amount of improvement should occur for the non practiced limb, indicating that bilateral transfer has occurred.
When considering the most typical research design a significant amount of improvement should occur for the non practiced limb.
What kind of augmented feedback provides details on the movement traits that lead to a performance result?Knowledge of Results (KR) is a type of augmented feedback that provides details about how an attempt to perform a skill turned out. Enhanced feedback's knowledge of performance (KP) category provides details on the movement traits that contributed to a certain performance outcome.
What is learning transfer? Why is learning transfer crucial for motor learning?WHAT IS LEARNING TRANSFER? Transfer of learning is typically defined by learning researchers as the impact of prior experiences on mastering a skill in a new setting or on learning a new skill. This effect could be favorable, unfavorable, or neutral (zero).
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A Texas household receives a Social Security check for $1500, which it uses to purchase a $40 pairof shoes made in Thailand by a Thai firm, a $1240 television made by a Korean firm in Korea, and$220 on groceries from a local store. As a result, U.S. GDPa. increases by $40.b. increases by $220.c. increases by $280.d. increases by $1500.
The correct answer is (c) Increases by $220. In social science, the term value is associated end-value of all the ultimate merchandise services that a nation produces in an accounting year or comparison with the previous year.
GDP is outlined because the current price of all final product and services created during a nation during a year. GDP measures the price of ultimate product and services—that is, those who area unit bought by the ultimate user—produced during a country during a given amount of your time (say 1 / 4 or a year). It counts all of the output generated among the borders of a rustic.
Economists don't issue intermediate product once they calculate gross domestic product (GDP). value may be a activity of the value of all final product and services created within the economy.
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most toy manufacturers would agree that toys cannot be marketed profitably in countries without commercial television advertising directed toward children. in this scenario, commercial television advertising exemplifies the availability of appropriate question 45 options: 1) demonstrations. 2) personal selling services. 3) direct mailing services. 4) public relations. 5) communication channels.
In this scenario, commercial television advertising exemplifies the availability of appropriate communication channels.
Describe communication and what it is.Speaking, writing, listening, and reading are all forms of communication. Communication is the process of delivering, receiving, and sharing information. Clear speakers and writers who respect other points of view are good communicators.
The importance of communicationBy enabling us to connect with people and share our needs and experiences, communication supports relationship building in daily life. The ability to communicate our thoughts, share information, and express our emotions is at the core of existence. We must all communicate.
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the french gnp is $542 billion. their monetary unit is the frank. typical trading partners are the other eu members, the united states, and africa. exports include machinery, transportation equipment, and food. the united states received $28.5 billion in imports in 2004 from france. french exports to the united states increased 56.9 percent from the previous year. this trend is not expected to change because of the cheaper u.s. dollar and the strong french demand.
This trend is not expected to change because of the cheaper U.S. dollar and the strong French demand is false.
Define trading partnersPartner in trade "Trading partner" is defined as (A) a manufacturer, repackager, wholesale distributor, or dispenser who accepts direct ownership of a product from another manufacturer, repackager, wholesale distributor, or dispenser or who receives a product as a transfer from another manufacturer, repackager, wholesale distributor, or dispenser.
As more individuals start looking for stock market jobs, trading has the potential to become a full-time professional vocation. There is no minimum age requirement to start trading stocks; both adults and kids are eligible to do so. When beginning their professions, traders can occasionally become impatient. Beginning today, they want to be successful tomorrow. Well, having patience is one of the secrets to becoming a successful trader.
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issuing 1,000 shares of 5%, $100 par value, cumulative preferred stock for $110 in cash per share affects the accounting equation by_____ (select all that apply.)increasing total liabilitiesincreasing Additional Paid-in Capitalincreasing Assetsincreasing Retained Earningsdecreasing total stockholders' equityincreasing total stockholders' equity
Assets rising Additional Paid-in Capital rising
raising total equity of stockholders
How do stocks work?Stocks come in two varieties: favored and ordinary. The owner of the latter cannot vote in corporate decisions, in contrast to the former, whose owner can. However, preferred shareholders have a legal entitlement to a set amount of dividend payments prior to any dividends being paid to other shareholders.
Additionally, there is a thing known as "convertible preferred stock." Essentially, this is a preferred stock with the option to convert at any point after a set date into a predetermined number of common shares.
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which of the following will help to determine the likelihood that users will readily adopt a new system? group of answer choices resource allocation organizational feasibility study project scope calculation cost benefit analysis
Cost benefit analysis will help to determine the likelihood that users will readily adopt a new system.
What do you mean by Cost Benefit Analysis?A cost benefit analysis is a technique for assessing the benefits of a decision or course of action minus the costs associated with that decision or course of action. A cost benefit analysis includes measurable financial measures such as money made or costs saved as a result of the project's decision.
In a cost benefit analysis, intangible advantages, costs, or consequences of a choice, such as employee morale and customer satisfaction, can also be addressed. Sensitivity analysis, cashflow discounting, and what-if scenario analysis for a variety of solutions may be included in a more sophisticated cost benefit analysis. All else being equal, it is usually advantageous for the business to take on a project if the analysis reveals that the benefits outweigh the expenses.
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the original statutes of bretton woods, the imf, world bank (wb), gatt, and oecd do, indeed, claim that global free trade and finance are conducive to maximizing global happiness, creating international harmony, and bringing about perpetual peace and justice.T/F
The original statutes of Bretton woods, the imf, world bank (wb), gatt, and oecd do, indeed, claim that global free trade and finance are conducive to maximizing global happiness, creating international harmony, and bringing about perpetual peace and justice. Given statement are true.
As we know, the IMF med to provide Fund whose Nation which have need to correct Balance of Payments. All institution like IMF, would Bank GATT and OECD is used to develop the Better place by coordinating the Nation in a common place.
All the institution help to promote the social output in me world by transferring the Responder.
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the money multiplier process also works in reverse when a loan is repaid since fewer checkable funds are then available to generate excess reserves.
It is true that the money multiplier process also works in reverse when loan is repaid since fewer checkable funds are then available to generate the excess reserves.
What is a money multiplier?A money multiplier is one of several closely related ratios of commercial bank money to central bank money in a fractional-reserve banking system, according to monetary economics. The entire number of loans that commercial banks are permitted to extend is equal to a multiple of the amount of reserves in a fractional-reserve banking system with legal reserve requirements. This multiplier, which is an economic multiplier, is the reciprocal of the reserve ratio minus one. Because some funds are kept as currency by non-bank public, actual ratio of money to central bank money, often known as money multiplier, is lower. Despite being a common representation of fractional-reserve banking, the money multiplier notion has come under fire for being inaccurate.
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The ______ indicates how investors must be compensated for time preference as well as for the amount of nondiversifiable risk that an investment carries.
The Security market line indicates how investors must be compensated for time preference as well as for the amount of nondiversifiable risk that an investment carries.
What is SMLA security market line (SML) is a line drawn on a chart that serves as a graphical representation of the Capital Asset Pricing Model (CAPM) —which shows the various systematic levels, or market risk, of various marketable securities, plotted against what is expected. the return of the entire market at any given time.
Also known as the “characteristic line”, the SML is a visualization of the CAPM, where the x-axis of the diagram represents risk (in beta terms), and the y-axis of the diagram represents expected results. The market risk premium of a given security is determined by where it is plotted on the graph relative to the SML.
Understanding the Security Market LineThe securities market line is an investment evaluation tool that originated with the CAPM — a model that describes the relationship of risk returns for securities — and is based on the assumption that investors need to be compensated for the time value of money (TVM) and related. the level of risk associated with any investment, is referred to as the risk premium.
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in an oligopoly, firms can increase their market power by pursuing dominant strategies. selling to buyers who have market power. colluding to set prices. undertaking heavy advertising expenditure.
Companies can expand their market dominance in an oligopoly by banding together to fix prices.
How do oligopolies grow the size of their market?Oligopolists favor non-price competition when they are in competition to prevent price wars. A price cut may have strategic advantages, such as increasing market share or preventing entry, but there is a risk that competitors will also lower their prices in response.
The most likely cause of a breakdown in collusive activity between businesses in an oligopoly is which of the following?The answer is that one company can make a quick profit. A market structure known as an oligopoly occurs when a small group of powerful companies work together to control the market.
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simple interest involves earning or charging interest on both a stated principal amount and the interest that has been previously earned or charged.
It is true that simple interest involves the earning or charging interest on both stated principal amount and interest that has been previously earned or charged.
What is interest?In the domains of finance and economics, interest is defined as the payment of a sum over the principal amount (the amount borrowed) to a lender or depositor at a predetermined rate by the borrower or deposit-taking financial institution. It's distinct from any fees the borrower might owe the lender or another party. Lenders are paid interest, whereas owners of assets, investments, or businesses are paid profits. Profit and interest are different from one another in this way. The sum of the interest paid or received over a predetermined period is the interest rate, which is equal to the interest rate divided by the principal amount borrowed or lent. The principle is increased along with any prior interest when interest is compounded.
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T/F when performing capital budgeting analysis, a benefit must take into account the income taxes that must be paid on it before it can be considered a true benefit.
When performing capital budgeting analysis, a benefit must take into account the income taxes that must be paid on it before it can be considered a true benefit is true.
What Is Capital?Anything that provides value or advantage to its owners, such as a factory and its equipment, intellectual property like patents, or the financial assets of a company or an individual, can be referred to as capital.
What does capital mean to businesses?Business capital typically refers to the assets that your firm owns in the form of money that you can employ to fuel expansion and create stability in your finances. There is a difference between capital and money. Due of its ability to be used to manufacture goods and generate income, capital can be more powerful than currency (e.g., investments).
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activities can be delayed only to the point where all their positive slack is used up, as any further delays would cause the project to
Activities can be delayed only to the point where all their positive slack is used up, as any further delays would cause the project to extend beyond the project completion time.
A project is any work that is intentionally planned to achieve a certain goal, whether done alone or in collaboration with others, and which may involve research or design. An alternative perspective describes a project as a series of connected tasks that must be completed within a specific time, budget, and other constraints.
A project can be a temporary social structure with groups working within a time limit to complete certain tasks. A project can be used as a special system or as part of a larger program management framework.
Hence the correct option is B
The above question is incomplete, the complete question is-
Activities can be delayed only to the point where all their positive slack is used up, as any further delays would cause the project to
a. increase costs of all the activities in the project.
b. extend beyond the project completion time.
c. be completed ahead of schedule.
d. increase its requirements for additional resources for all activities.
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An organization is planning on moving most of its on-premises resources to azure. the it team must classify expenses as part of the business justification. under which of the following categories would the expenses for pay-per-use software licenses be included?
The expenses for pay-per-use software licenses would be included in the category of Operational Expenses.
Operational expenses are expenses related to the day-to-day running of the business such as employee salaries, rent, utilities, and software licenses. Pay-per-use software licenses are required to use certain software and are paid for on a regular basis.
This type of expense falls under the category of operational expenses because it is necessary for the organization to use the software in order to run its operations effectively. Additionally, the cost of these licenses must be factored into the overall cost of operations in order to ensure the organization is able to remain competitive and profitable.
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2. Searched for An effective employee screening test must be : a. Valid. b. Reliable. . Both aand b. . None of the above .
Answer: both a and b
Explanation:
Wallace owns a construction company that builds both commercial and residential buildings. He contracts to build a residential building for $800,000 for which he is eligible to use the completed contract method of accounting. In the current year for regular income tax purposes, Wallace does not recognize any income on the contract. Under the percentage of complete method, the income recognized under the contract would have been $60,000.Wallace's AMT adjustment is: A) $0. B) $60,000 negative adjustment. C) $60,000 positive adjustment. D) $800,000 positive adjustment. E) None of the above.
C) Wallace's AMT adjustment of $60,000 positive adjustment.
Under the completed contract method of accounting, Wallace does not recognize any income on the contract in the current year for regular income tax purposes. However, under the percentage of completion method, the income recognized under the contract would have been $60,000.
Therefore, Wallace must make a positive adjustment of $60,000 to account for the difference in income recognition between the two methods of accounting. This will result in an additional amount of income being reported on his taxes, which will create a positive adjustment of $60,000.
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One of the most significant creation-related issues to consider when selecting a business’s organizational form is __________.
A) the organization’s policies
B) the target demographic for the services or products of the organization
C) how much time it will take to create a particular organization
D) how many people are recruited annually by the organization
E) the cost of creation
When choosing an organizational structure for a firm, one of the most important creation-related factors to take into account is the organization's policies.
What exactly do you mean by business?An entrepreneurial organization or establishment that does commerce is known as a business. They could be of the commercial, industrial, or other variety. For-profit companies operate with the goal of turning a profit, whereas nonprofit companies prioritize charitable causes.
What constitutes a company's foundation?If you want to succeed, you should begin by mastering the foundations of business. By researching your clientele and finding out what they want and need, you may create a long-lasting business, but you must first master the essential business skills.
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________________ revenue arises when a business receives cash in one period, but does not provide all of the related goods or services until a later period
Deferred revenue arises when a business receives cash in one period, but does not provide all of the related goods or services until a later period
In accrual accounting, money received for products or services but not yet earned is referred to as deferred income. It is recorded as a liability up until delivery is made, at which point it is transformed into revenue in accordance with the revenue recognition principle.On the balance sheet, deferred revenue is shown as a liability, while the amount received increases the cash (asset) account.On the balance sheet, the deferred revenue item is typically categorized as a current liability. If performance is not anticipated over the next 12 months, it can be categorized as a long-term liability.To know more about Revenue here
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You have a goal to increase scale and improve CPA performance and efficiency. Which of the following marketing objectives aligns to that goal?
Action
Hybrid
Awareness
Consideration
Action will be the marketing objective by which the goal of increasing the scale can be achieved that is option A is correct.
Within the market if any organizations wants to increase it's efficiency or it needs to increase the performance of the organization, its members will have to take suitable measures or actions to do the job. IF the members will not take suitable actions, it is possible that the reputation of the organization as well as the revenue from the organization will go down. The members will have to take measures including the advertisement of the products to hiring skilled and efficient labors that work for the betterment of the company. Instead of formulating plans, the plans should be applied at a good pace.
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book value provides a useful benchmark in the price to book ratio, because multiple choice question. book value only includes the capital supplied by equity investors in the firm book value is more volatile that earnings book value includes a current assessment by investors of the firm's future prospects book value includes the accumulated retained earnings for the firm
Book cost offers a useful benchmark in the Price to Book ratio, because. e book value includes the accrued retained salary for the firm.
What is the ratio of book?The book-to-market ratio compares a company's e book fee to its market value. The book cost is the price of belongings minus the fee of the liabilities. The market cost of a organisation is the market charge of one of its shares multiplied by using the variety of shares outstanding.
How is e book ratio calculated?The rate to e book ratio (P/B) is calculated by dividing a company's market capitalization through its book cost of fairness as of the state-of-the-art reporting period. Or, alternatively, the P/B ratio can also be calculated through dividing the contemporary closing share charge of the organization through its most latest e book value per share.
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https://brainly.com/question/12450111#SPJ4Which of the following must be true if at the 10th unit of output, marginal cost is $130 and ATC is $150? 2 ATC of producing the 9th unit is higher than $150 MC of producing the 9th unit is higher than $130 AVC of producing the 10th unit is equal to $20 ATC of producing the 9th unit is less than $150 AVC of producing the 10th unit is higher than $150
ATC of producing the 9th unit is higher than $150. is correct option to the given question.
This is because for the 10th unit of output, ATC is $150 and MC is $130. This means that the total cost of producing the 10th unit is $150, which is higher than the marginal cost of the unit. Therefore, the total cost of producing the 9th unit must have been higher than $150, which implies that its ATC must have been higher than $150.
The term "marginal cost" is the rise in manufacturing costs brought on by the creation of more product units. A different name for it is the marginal cost of production.
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brad, carlos, and dora decide to admit faisal as a new partner in eastside physicians. faisal's liability for partnership debts incurred before his admission is
Faisal's liability for partnership debt incurred prior to enrollment is Carlos' liability for unjustified disconnection and damage.
When two or more people run a business for profit, it is known as a partnership. The word "company" is also used when referring to partnerships. This leaflet uses both words.
For partnerships, he needs at least two partners. Partnerships are called 'principles' and partners are called 'agents'. The Partnerships Act 1890 applies in determining whether a partnership exists.
Some partnerships are established under a partnership agreement signed by all partners. A partnership agreement is usually drafted by an attorney and usually contains the following information:
How to distribute profits and losses.
A person who has the authority to enter into contracts on behalf of the company.
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Which of the following does not explain why is there an inverse (negative) relationship between price and quantity demanded?
A. Income effect--that is, a price change can affect the amount of some item you can afford to purchase
B. Substitution effect -- that is, a price change can affect the opportunity cost of purchasing some item and your willingness to switch to ( or from) another item.
C. Diminishing marginal utility-- as you consumer more, as the result of price decrease, the additional satisfaction received from the additional units consumer will start to go
D. When the price of an item increases, you buy more because it is more valuable
An economic principle known as the law of demand explains why there is an inverse relationship between the demand for a commodity or service and its price. When a good or service's price rises, fewer people will buy it, and vice versa, if all other variables stay the same. Hence we can say that option (d) does not explain the inverse relationship between price and quantity demanded
The law of demand states that as price decreases, quantity demanded increases and as price increases, quantity demanded decreases. The price and quantity demanded are inversely correlated.
The decreasing slope of the demand curve results from the inverse relationship between price and quantity desired. The link between price and quantity demanded is represented by the demand curve.
Demand is the capacity and desire of consumers to buy at a given price and time. Buyers' demand responsiveness to price fluctuation is known as elasticity of demand.
Demand might fluctuate more in response to price changes if it is elastic. Demand varies less in response to price changes when there is inelastic demand.
Demand is less responsive to price change, or inelastic, when: consumers see fewer substitute competing items; the item represents a small portion of the consumer's budget; and consumers have less time to adjust to price changes.
Switching to alternative products from competitors is more practical if there are no costs involved. Due to the ease of substituting commodities, demand for goods is elastic, or more responsive to price changes.
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