During its first year of operations, Martinez Corp. had these transactions pertaining to its common stock. Jan. 10 Issued 25,800 shares for cash at $6 per share. July 1 Issued 54,000 shares for cash at $8 per share. (a) Journalize the transactions, assuming that the common stock has a par value of $6 per share. (b) Journalize the transactions, assuming that the common stock is no-par with a stated value of $3 per share.

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Answer 1

Journalize the transactions par value of $6 per share is, 108000 and no-par with a stated value of $3 per share is,  270000.

What does common stock mean?A security that symbolizes ownership in a firm is called common stock.Common stock owners choose the board of directors and cast ballots for corporate rules.Long-term rates of return are often higher with this type of stock ownership.

What is an example of a common stock?For instance, investors will receive $0.50 for each ordinary share they own if a corporation announces a dividend of $10 million and has 20 million shareholders.

According to the question:

(a) Journalize the transactions, assuming that the common stock has a par value of $6 per share.

D: Cash 154800.

C: common stock 154800.

D: Cash 432000.

C: Common stock 324000.

C: Paid-in Capital in Excess of Par Value-Common Stock 108000.

(b) Journalize the transactions, assuming that the common stock is no-par with a stated value of $3 per share.

D: Cash 154800.

C: Paid-in Capital in Excess of Stated Value-Common Stock 77400.

C: Common Stock 77400.

D: Cash 432000.

C: Common Stock 162000.

C: Paid-in Capital in Excess of Stated Value-Common Stock 270000.

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Related Questions

Heinz changed the packaging of its ketchup, switching from a glass bottle to a plastic bottle. Since the bottle was squeezable, consumers had an easier time getting ketchup out of the bottle. This change in packaging is a strategy that can most likely help boost sales in the _______ stage of the product life cycle.

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This packaging change is a marketing tactic that may increase sales during the product life cycle's maturity stage.

What are the Product Stages?

The product life cycle is the progression of a product through Five distinct stages—development, introduction, growth, maturity, and decline.

What are the Maturity Stages?

The maturity stage occurs after the introduction and growth stages. The maturity stage is the longest stage of the product life cycle. In this stage, sales growth begins to decline; the company reaches the highest point in the demand cycle; and advertising strategies have minimal impact on sales growth.

What are the characteristics of a product in maturity stage?

The mature stage's main characteristic is that sales volumes are still growing but at a slower rate. The closer to the end of the mature, the slower will be the growth in sales volume. Competition for market share and customers is also more intense.

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James had a contract with Frasier to fix Frasier's plumbing issue at his home. The contract was made to fix the issue for $3,000. But after the work was completed James wanted an extra $500 because it was harder work than he had anticipated. Frasier s attempt to get the extra money is void of consideration under the ________ concept.

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James had a contract with Frasier to fix Frasier's plumbing issue at his home. The contract was made to fix the issue for $3,000. But after the work was completed James wanted an extra $500 because it was harder work than he had anticipated. Frasier s attempt to get the extra money is void of consideration under the pre-existing duty concept.

What is Pre- Existing Duty?The contract law's pre-existing duty rule is one example of consideration. The idea of consideration originated in England and has now spread to other countries, including the US.This rule states that fulfilling an obligation that already exists does not constitute sufficient compensation to justify a binding contract, but there are several exceptions to the norm.What are Pre- Existing Duty Alteration?

Any party may alter this agreement by providing new consideration. One of three circumstances often occurs in this situation:

Pay less: The full amount is still due even if one party has fulfilled their obligation under the agreement but the other refuses to pay until the debt is lowered.Pay more: If a greater sum of money is not paid, one party declines to carry out her obligations under the agreement.Public duty: The person asking for payment already has a legal obligation to carry out the task.

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What are the effects of gangs on communities? check all that apply. business owners and families are intimidated by gang members. homicide rates increase. the number of young people who are incarcerated declines. young people who join gangs are more likely to become career criminals. gang violence results in millions of dollars to taxpayers.

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The effects of gangs on communities are:

Business owners and families are intimidated by gang members. young people who join gangs are more likely to become career criminals.

Option A and C is the answer

What are the effects of gangs?

Gangs is formed When number of people come together. It could be intimidating to members of the community because of their activities and number.

Several career criminals emerge from among them due to negative influence from among the members.

Therefore, The effects of gangs on communities include business owners and families are intimidated by gang members.

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Answer:

A.) Business owners and families are intimidated by gang members.

B.) Homicide rates increase.

D.) Young people who join gangs are more likely to become career criminals.

E.) Gang violence results in millions of dollars to taxpayers.

Explanation:

edge

When a firm's approach to human resources is designed to drive the company's overall performance, employees are being used to ______.

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Employees are used to meet the firm's strategic objectives when a firm's approach to human resources is geared to drive the company's overall success.

Companies frequently set explicit and verifiable progress targets. Strategic objectives are the firm's big-picture aims; they outline what the organization does to strive to fulfil its mission. Strategic objectives are often performance goals, such as launching a new product, increasing profitability, or increasing market share for the company's product.

Business enterprises, in particular, spend substantially on information to fulfil six major business objectives: Excellence in operations. New goods, services, and business models are being developed. Customer and supplier trust.

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The two primary competitive levers that managers can use in order to answer the question of how to compete are.

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The two primary competitive levers that managers can use are value and cost in order to answer the question of how to compete.

The term common overall performance lever refers to a circumstance, technique, or functionality that allows lengthy-term, ethical, and exceptional universal performance to stand up. By means of the use of the extension, because of this such ordinary overall performance levers may be used to enhance commercial enterprise overall performance and profitability while known as upon.

Will respond effectively, corporations ought to reputation at the five 'productiveness levers,' or instructions of things that may be acted upon as a way to result in preferred adjustments: people, techniques, structures, records, and property (matters).

Our member-pushed cognizance of these three opportunity levers: technique, innovation, and advertising, and marketing and advertising can assist function us to provide the maximum member price now and in the future.

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What type of knowledge develops marketing research-based inferences about how marketing organizations should strategically address problems or opportunities

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descriptive knowledge

The managers at Camphor Plastics decided that their firm needed to diversify because of overall falling sales and lower performance in one sector. How does diversifying compensate for the lackluster performance in this sector

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The diversification will compensate for the lackluster performance in this sector by having higher performance in another sector.

What is a diversification?

This is a business strategy that involves entering into a new market that one firm have not be operating in for introduction of a new product for that new market.

Hence, for Camphor Plastics, the diversification will compensate for the lackluster performance in this sector by having higher performance in another sector.

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A goal of monetary policy and fiscal policy is to Question 35 options: offset the shifts in aggregate demand and thereby eliminate unemployment. offset shifts in aggregate demand and thereby stabilize the economy. enhance the shifts in aggregate demand and thereby create fluctuations in output and employment. enhance the shifts in aggregate demand and thereby increase economic growth

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A goal of monetary policy and fiscal policy is to offset shifts in aggregate demand and thereby stabilize the economy.

What are the goals of monetary policy and fiscal policy?

In order to achieve macroeconomic policy goals like price stability, full employment, and steady economic growth, central banks must implement monetary policy.

The federal government's tax and spending policies are referred to as fiscal policy.

Regular objectives of monetary and fiscal policy include stabilizing prices and wages, achieving or maintaining full employment, and achieving or maintaining a high rate of economic growth. The 20th century saw the establishment of these ideals as legitimate aims of governmental economic policy as well as the creation of the means by which to accomplish them.

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The Critical Path is: Group of answer choices the interrelationships of project activities. the shortest path in the project network. the most important identified tasks within the project. the longest path in the project network. the longest time in which the project can be completed.

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The longest path in the project network is the critical path.

Critical Path is an estimate of the minimal (shortest) project duration and is the longest path through the project network diagram.

Since there is no (positive) float or wiggle space on the Critical Way, it is the longest path through the project. On the timetable network diagram, there is (positive) float or leeway for other (non-critical) paths.

Because the Critical Path is the only path that runs continuously from beginning to conclusion of the project, with no float or wiggle room to cut down, it is also an estimate of the minimal (shortest) duration to accomplish the project. Other paths contain float or wiggle room, but cutting those courses won't speed up the completion of your job.

The Critical Path must be shortened in order to reduce the project timeline, and this can be done by applying schedule compression strategies like Fast-tracking and Crashing.

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Rob has made several successful investments. Each will earns $20,000 per year for the next 15 years. To expand the program, he will need an additional headcount. But Pat, another team member, wants additional headcount for a different investment. Management will only allow one hire. What does this situation illustrate

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This situation illustrates competition over resources can cause conflict.

Conflict theorists contend that in almost every human relationship and contact, competition is a persistent and, at times, overwhelming component. The lack of resources, especially material resources like money, real estate, commodities, and more, has led to competition.

What is Conflict theories?

According to Karl Marx's Conflict Theory, society will constantly be at odds because of its constant struggle for dwindling resources. The consequence of this hypothesis is that individuals who have wealth and resources would guard and preserve them, while those who lack them will take any necessary steps to get them. Because of this dynamic, there is an ongoing conflict between the rich and the poor.

What is a resource conflict?

A resource conflict occurs when a project manager wants a limited resource yet there isn't enough capacity to meet all of the demands on it. When it does, you should reflect on a few things to get some much-needed perspective on the issue.

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A supervisor engaged in ______ is grouping people, tasks, and resources into organizational units to facilitate the planning, leading, and control processes. Group of answer choices job enrichment departmentalization functionalization task integration task design

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The supervisor is engaged in departmentalization.

Departmentalization or departmentation is a process in which jobs/teams are integrated into functional units called departments based on their area of competence in order to meet the organization's goals. As a result, the entire organization is split into portions, i.e. departments, which consist of a group of people that carry out identical duties.

It specifies which functions/activities will be hosted and coordinated in the same location. Furthermore, it organizes the employees who will carry out the designated functions/tasks.

Therefore, the correct option is departmentalization.

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A network of organizations and business processes for procuring raw materials, transforming these materials into intermediate and finished products, and distributing the finished products to customers is called a(n): distribution channel. marketing channel. supply chain. information system. value chain.

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(c)

Supply chain

It is the network between company and suppliers which is to be created to produce & distribute the particular product to final customer.It is the sequence of all organizations, activities, technology, individuals and resources involved in creation (production) and sale (distribution) of a commodity.It's main aim is to focus on coordinating among all the departments to improve efficiency, reduce cost, customer satisfaction. Supply chain provides the centralized controlThere primary functions are:PurchasingManufacturingInventory managementDemand PlanningWarehousingContinuous model, fast model, efficient model etc are the types of supply chain.

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( b ) explain five circumstances under which a high population growth may be desirable ​

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Answer:

There is a need to increase the demand in market for both goods and services.

There is a need to attract foreign investors

As societies modernize, mortality rates fall while birth rates remain high leading to high population growth rates.

Higher population growth may be beneficial in high-income countries where there is currently a tendency for population growth rates to decline

Development in agriculture, better techniques to grow more and better quality food.  Food available at all the times due to better storage conditions. So people do not die of starvation when food is not available.

Explanation:

High population growth may be desirable ​ in the market, investors, societies, high-income, and agriculture.


What is a population?

The population is the number of people residing in a certain area. Estimating the population enables us to determine how many beings there are and how best to respond.

The market needs to see an increase in demand for both goods and services.It is necessary to draw in international investors.Modern societies see declining rates of death while experiencing large families, which results in rapid population growth.In high-income nations which have now a propensity for population increase to drop, higher growing population may well be advantageous.advancements in agriculture, new ways to produce more food of higher quality. Food is always available because to improved storage circumstances. Consequently, when food is scarce, people do not perish from hunger.

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If domestic saving is greater than domestic investment, then a country will have a ______ and positive net capital ______.

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If domestic saving is greater than domestic investment, then a country will have a net positive export and positive net capital outflow.

What is net capital outflow?

Net capital outflow refers to the amount a country receives as credit and what is debited to other country. This means there is outflow of funds in a country.

The capital outflow of a country refers to financial assets going from a country to another country.

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If domestic saving is greater than domestic investment, then a country will have a positive net export and positive net capital outflow.

What is domestic saving?

This is the calculation of the Gross domestic product minus the final consumption.

This term is used to refer to the existing difference that exists between gross income and the consumption of a country.

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How long a company holds inventory before selling it can be measured by dividing cost of goods sold by the average inventory balance to determine the:

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The Inventory Turnover Ratio, which can be calculated by dividing the cost of goods sold by the average inventory balance, can be used to measure how long a company keeps inventory before selling it.

Businesses may make better judgments in a range of areas, such as pricing, production, marketing, purchasing, and warehouse management, by measuring and calculating inventory turnover. In the end, the inventory turnover ratio measures how well the business makes sales from its inventory.

Inventory Turnover Ratio = Cost of Goods Sold / Avg. Inventory

Average inventory = (beginning inventory + ending inventory) / 2

The inventory turnover ratio calculates how frequently inventory is sold and replaced during a specific time frame.

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Hugh Snow, the buyer, returned merchandise to Farley Company, the seller. The entry on the books of Farley company to record the return of merchandise from Hugh Snow would include a:

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Debit to sail returns and allowance and a credit to account receivable is the answer.

When a seller sells goods to a customer, the journal entry should include a debit to accounts receivable because accounts receivable is a current asset recoverable in a future date and a credit to sales revenue because the sale is an income to the seller. Subsequently, when the buyer returned merchandise to the seller, accounts receivable shall be credited to the extent of the sale value of goods returned because it was debited at the time of recording the original sale transaction (as explained above).

As sales is an income account, it cannot be debited at any cost and so one contra sales account named 'Sales returns and allowances' shall be debited for recording goods returned by a customer.

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John produces furniture's which he sells at his sales office .he estimates that the investment for plant and equipment will be $225000,where labor material,packaging,shipping will be about $1000 per item.if the furniture's are sold for $3000 each what volume is necessary for john to break even ?

Answers

The volume necessary to break even is 113 pieces of furniture

What is breakeven volume?

Breakeven volume is the number of output required for the firm to achieve a zero profit, where total costs are the same as the total revenue.

Breakeven can be determined as the fixed cost divided by the contribution margin per unit(i.e. sales price minus variable cost)

breakeven=fixed cost /(sales price-variable cost per unit)

fixed cost=cost of plant and equipment=$225000

sales price-variable cost per unit=$3,000-$1,000

sales price-variable cost per unit=$2,000

breakeven=$225000/$2,000

breakeven=112.50(units of furniture cannot be fractional, 113 is the correct answer)

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To break even, the volume of production and sales that John requires is 113 units of furniture.

What is break-even analysis?

Break-even analysis is an accounting tool that shows the break-even point and enables management to make production and sales volume decisions.

At the break-even point, the total costs and total revenue are equal.  This implies that at this point, there is no profit or loss.

The break-even point in units can be computed as fixed costs divided by contribution margin per unit.

Data and Calculations:

Fixed costs = $225,000

Variable costs (direct labor, materials, and selling) = $1,000

Selling price per unit = $3,000

Contribution margin per unit = $2,000 ($3,000 - $1,000)

Break-even point in units = 113 ($225,000/$2,000)

Thus, to break even, the volume of production and sales that John requires is 113 units of furniture.

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McDonald's operates through a franchising system wherein the head office uses strategic and financial controls to ensure that the franchises are creating the greatest possible value. This is an example of a(n):

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McDonald's operates through a franchising system wherein the head office uses strategic and financial controls to ensure that the franchises are creating the greatest possible value. This is an example of a strategic network.

A network organization's strategic management is the collection of managerial choices and activities that network management uses to decide in advance what needs to be done and how it should be done.

Strategic networking is the capacity to mobilize data, assistance, and resources from one area of a network to achieve goals in another, as Ibarra and Hunter discovered in their research.

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Matthew has been asked to approve a marketing campaign that, although it is not illegal, promotes food products to children. He is concerned that the food products are not particularly nutritious, although they are not as bad for children as some others sold by competitors. By using the ethical decision-making metric, Matthew will

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Matthew will evaluate the alternative using a series of questions.

What are the ethics of marketing?

Fairness and honesty are encouraged by marketing ethics in all of their advertisements.

Any false statements made to clients, invasion of their privacy, use of stereotypes, and targeting of the weaker demographic (such as youngsters and the elderly) are all considered unethical. Even attempting to harm a competitor's reputation is regarded as immoral.

Ethics in marketing is essential to ethical decision-making for a product or service to have the best possible presence in its specialized market.

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If the central bank sells $10,000 in bonds to a bank that has issued $350,000 in loans and is exactly meeting the reserve requirement of 10%, the money supply _____.

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The money supply will  be $100,000

Banks need to have a $ 10,000 reserve, so if you buy $350,500 with 4,444 bonds, you'll need to reduce your lending by $10,000 to make up for the difference.

A decrease in credit means a decrease in deposits at other banks. In other words, the excess reserve was initially zero, but after the bond is sold it will be minus $10,000,

. The money supply will be reduced by $10,000  x 1 / 0.1 = $100,000 .

Banking is a business that protects money for others. Banks lend this money and generate interest that benefits the bank and its customers. A bank is a financial institution that is allowed to accept deposits and make loans. However, we can also provide other financial services.

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John is 17 years old and he earned $3,500 in a summer job. His grandparents just gave him a gift of $5,000 to help him learn financial responsibility (nice grandparents). How much can John contribute to an IRA (Traditional or Roth)

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"John is 17 years old and he earned $3,500 in a summer job. His grandparents just ..."John can contribute $3,500  to an IRA. This is further explained below.

What is IRA?

Generally, For those looking to save and invest for their retirement, an individual retirement account (IRA) is a kind of savings account that offers favorable tax treatment.

In conclusion, "John, who is just 17, worked all summer and saved $3,500. Just recently, his grandparents..." John has an annual IRA contribution limit of $3,500.

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Which of the following statements about the role of the U.S. Constitution's commerce clause in regulating business activity is not true? Group of answer choices One purpose of the commerce clause is to prevent one state from isolating itself economically from other states. The commerce clause is seen as prohibiting discrimination against interstate commerce. The test for whether a state regulation violates the commerce clause is whether that regulation puts an undue burden on interstate commerce. The commerce clause prohibits a state from placing any burden on interstate commerce. If a state regulation is preempted by federal law, it is automatically unconstitutional under the commerce clause.

Answers

The incorrect statement about the role of the U.S. Constitution's commerce clause in regulating business activity is not true is "the commerce clause prohibits a state from placing any burden on interstate commerce".

What is U.S. Constitution's commerce clause?

The U.S. Constitution's Article 1, Section 8, Clause 3 is referred to as the "Commerce Clause," and it grants Congress the authority "to regulate commerce with foreign countries, among the several states, and with the Indian tribes."

The examples of commerce clause are-

Dealings in international trade are one instance of this. Federal laws and regulations, for instance, apply to any agreements made by a corporation to distribute a product to another nation. Second, it is asserted that the states and Congress both have concurrent authority to control commerce.

The Commerce Clause has been frequently invoked by Congress as justification for exerting legislative control over the actions of states and their residents, sparking intense and ongoing debate about the distribution of power between the federal government and the states.

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An organization has considered its sales channels, its customer service requirements, and its operating model. Also it has analyzed both its value system and the value systems of key supply chain partners. What else does it need to look at to determine its fitness for a given strategy, according to Michael Porter?

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According to Michael Porter :

A sales channel is a strategy employed by a producer to market goods or services to final consumers. Depending on how things are delivered to customers, sales channels can be direct or indirect. With the aim of closing the sale, these channels can be platforms (online or offline), people, or partners.A further perspective is that a sales channel is a source of income for a manufacturer that facilitates the sale of goods or services.A business can sell its goods and services through direct channels like these. Kiosks: These are self-service points where customers may make purchases and payments. Display rooms. Sales staff, which the business employs to sell its goods to clients and customers.What are the principles of a sales organization?

A sales organization is built on a few key organizational tenets that are closely related to the tenets of the entire business. These principles act like software, directing and regulating the organization's efficient operation. Principles assist the organization in pursuing its objectives and investigating market prospects.

What standards should a successful sales organization meet?

The management should be aware of the requirements for creating a successful sales organization before one is created. These are listed below:

1. The functions of the sales department should be clearly defined by the sales organization, and the activities of the salespeople and their superiors should be planned and coordinated in a logical manner.

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A customer cluster is the same as: Group of answer choices A low-end product preference. A customer market segment. A group of competitors. A premium priced product. None of these answers is correct.

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A customer cluster is the same as A customer market segment.

In the context of customer segmentation, customer clustering analysis is the use of a mathematical model to discover similar groups of customers based on finding the smallest differences between customers within each group. These similar groups are called "customer prototypes" or "personas."

The goal of cluster analysis in marketing is to accurately segment customers for more effective customer marketing through personalization. A common method of cluster analysis is a mathematical algorithm called k-means cluster analysis, sometimes called scientific segmentation.

The resulting clusters support better customer modeling and predictive analytics and are also used to target customers with offers and incentives tailored to their needs, needs, and preferences.

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Ian owes Shirley $5,000, which is payable in five installments at an interest. However, after two installments, Ian offers to pay Shirley the entire debt to avoid paying the interest. In this scenario, which of the following will take place if Shirley announces that Ian does not have to pay the debt in further installments? Group of answer choices arbitration release negotiation rescission waiver

Answers

In the scenario where Ian offers to pay Shirley the entire debt to avoid paying the interest; in that case "release" will take place if Shirley announces that Ian does not have to pay the debt in further installments.

What are installments?

The act of adding something new or an installment is one portion of something that has numerous parts, such a payment or a story, are the definitions of an installment.

The monthly installments are described as-"When you pay for something in installments, you don't pay the entire amount at once; rather, you make little payments at regular intervals throughout time".

The advantages of Instalment schemes are-

These schemes enable you to pay for items that you cannot afford or cannot afford to buy outright. To avoid paying the full amount in one month, we can spread out the cost over a longer period of time. We also have the choice to cancel before paying the entire sum. more affordable than a personal loan.

The working in installment plans is-

The whole cost of your purchase is automatically removed from your available credit when you sign up for an installment plan.The minimum payment required each month includes the amount of your monthly installment. Your credit limit is increased as you make payments against the sum.

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Placing barcodes on multiple sides of products and not bagging groceries are examples of ____________________ which allow Aldi to maximize efficiency.

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Aldi uses supply chain innovations for printing barcodes on many sides of products and without bagging groceries to increase productivity.

Getting the best suppliers and materials is the foundation of innovation in supply chain management.

The supply chain can be innovated in five key areas:

1. Design for Assembly: This is the process of creating a product in a way that makes assembly as simple as possible, for example, by reducing the quantity of pieces or components.

2. Planning for Production: This refers to making the product simple to manufacture, which eventually lowers the cost of production. For improved outcomes, a good supply chain mapping tool should be employed.

3. Product serviceability through design: This relates to creating products that are simple to put together, take apart, and reuse individual parts. These goods are typically simpler to fix.

4. Environmental Design: The major goal is to have a minimal influence on the environment. This objective can be achieved, for instance, by using less packaging or recycling garbage generated along the process.

5. Six Sigma Design: This relates to creating a product with the goal of reducing errors, increasing uniformity, and lowering costs.

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An implication of trade barriers for business practice is that they

Answers

An implication of trade barriers for business practices is that  tariff barriers raise the costs of exporting products to a country.

What is trade barriers ?

Trade barriers serves as any obstacle that can reduce the business of a country with another country.

Major barriers to international trade are:

natural barriers,tariff barriers, taxes on imported goods;

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The cost structures of a monopoly have ____________ relationships among fixed costs, variable costs, marginal costs, and average cost values as pure competition. The cost structures of a monopoly have ____________ relationships among fixed costs, variable costs, marginal costs, and average cost values as pure competition.

Answers

The cost structures of a monopoly have the same relationships among fixed costs, variable costs, marginal costs, and average cost values as pure competition.

Profits for the monopolist, like all organization, can be identical to total revenues minus total costs. The sample of costs for the monopoly may be analyzed inside the identical framework because the costs of a perfectly competitive firm—that is, with the aid of using using total cost, fixed cost, variable cost, marginal cost, average cost, and average variable cost.

However, due to the fact a monopoly faces no competition its situation and its choice method will fluctuate from that of a superbly aggressive organization.

What is Monopoly Price?

A monopoly price is set by a monopoly. A monopoly occurs when a firm lacks any viable competition and is the sole producer of the industry's product. Because a monopoly faces no competition, it has absolute market power and can set a price above the firm's marginal cost. Since marginal cost is the increment in total cost required to produce an additional unit of the product, the firm can make a positive economic profit if it produces a greater quantity of the product and sells it at a lower price.

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What is the term for the level of output at which the sales revenue of the firm just covers the fixed and variable costs including normal profits

Answers

When the level of output leads to sales revenue that covers the fixed and variable costs, this is called the Breakeven Point.

What happens at the Breakeven point?

This is the point where the company has sold enough units to make back its variable and fixed costs.

At this point, the company would be making $0 profits which is also considered in business to be the normal profit.

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The main determinant of elasticity of supply is the Multiple Choice number of uses for the product. number of close substitutes for the product available to consumers. amount of time the producer has to adjust inputs in response to a price change. urgency of consumer wants for the product.

Answers

The main determinant of the Elasticity of Supply is the availability of close substitutes.

The Elasticity of Supply means the relationship between a commodity and its price. It measures how the company increases or decreases its production based on its change in price.

The major determinant of the Elasticity of Supply is:

1. Nature of the Goods - It takes into account the factor of production, which can easily get transferred.

2. The definition of the commodity-  The narrower the definition the greater the supply of elasticity.

3. Time- It works more in long run than in the short run.

4. Cost of attracting goods- If the related goods are cheaply available, the elasticity of supply is more.

5. Level of Price- It is inversely proportional to the elasticity of supply.

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