The correct option is B. Tax planning ahead of time is an example of micromanagement.
It entails organizing your affairs in a way that the tax liability is correctly controlled. Compliance with the terms of the Income Tax Law and its related laws is the goal of Tax Management. Tax management aids in preventing the payment of interest, penalties, and other fees.
Why is tax planning necessary?To improve personal finances and increase savings for investments, tax preparation is essential. Additionally, it aids in reducing the amount of income tax due each fiscal year, increasing the number of funds accessible for retirement. By optimizing deductions and achieving more tax control, effective tax planning aids businesses in reaching their financial objectives.
The income tax that is paid in large amounts in advance as opposed to all at once at the end of the year is known as advance tax. Advance tax, often referred to as earn tax, must be paid overtime according to the due dates established by the income tax division.
The best choice is B. Micromanagement is an example of in-advance tax planning.
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Which is a feature of debit cards?
a. They provide direct access to your checking account.
b. They are the most secure form of payment.
c. They are a primary component of your credit score.
d. They can be used to pay off large purchases over time.
a. they provide direct access to your checking account
a pack of paper cost 379 including tax mr valentino wants to purchase packs of paper for his class and has a $15 budget
According to the question, the number of packs of paper Mr. Valentino can purchase is less than "4"
How to determine the number of packs of paper Mr. Valentino can purchase?
The given parameters are;-
Cost = $3.79 per pack
Budget = $15
Let the number of packs be x.
So, we have
Cost * x <= Budget
Substitute the known values in the above inequality
3.79 * x <= 15
Divide both sides by 3.79
x <= 15/3.79
Evaluate the quotient
x <= 3.95
Round up and rewrite as
x < 4
This mean that the number of packs of paper Mr. Valentino can purchase is less than 4
See attachment for the inequality: - The graph of the inequality uses a dashed line, and the left part are shaded
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Here is the full question:
A pack of paper costs $3.79, including tax. Mr. Valentino wants to purchase packs of paper for his class and has a $15 budget. Write and solve an inequality to solve for the number of packs of paper Mr. Valentino can purchase and describe the graph of the solution.
iven that jacob's chocolates had owner investments of $4,000; net income during the period of $10,000; and owner withdrawals of $300 calculate the ending balance in the owner's capital account.
Iven that Jacob's chocolates had an owner the ending balance in the owner's capital account is $13,700.
What is the owner's capital account?The equity account that appears on a company's balance sheet is called an owner's capital account. It indicates the total ownership stakes that investors hold in a company. This account holds the owners' investment in the company as well as the net income it generates, which is then decreased by any draws made to the owners.
Given,
Investment =$4,000
Net Income =$10,000
Capital withdrawal =$300
Required to find ending capital account balance =?
Ending capital account balance = $4,000 + $10,000 - $300
Ending capital account balance = $13,700
The ending balance of the owner's capital account equals the beginning balance less any withdrawals, plus contributions, plus or minus any net gain or loss for the time. The balance at the conclusion of the accounting period is determined using this formula, which is updated annually.
Thus, the ending capital account balance is 13,700.
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when auditing merchandise inventory at year-end, the auditor performs audit procedures to ensure that all goods purchased before year-end are received before the physical inventory count. this audit procedure provides assurance about which management assertion?
The audit procedure provides assurance of the Cutoff management assertion.
The definition of an audit is the technique of assessment or analysis of something to decide its accuracy or protection or is the report that pronounces the result of such analysis or evaluation. An example of an audit is a dean analyzing your credits to determine your eligibility for graduation.
Although each audit method is particular, the audit procedure is comparable for most engagements and typically consists of 4 ranges: planning (every now and then known as Survey or preliminary overview), Fieldwork, Audit document, and follow-up overview. client involvement is crucial at each level of the audit process.
An internal audit tick list is the particular commands or recommendations utilized by auditors to test an employer's monetary information, operational facts, or IT systems, applications, processes, and protection.
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is the use of resources by an individual, firm, region, or nation to produce one or a few goods or services rather than the entire range of goods and services.
Specialization is The use of the help of someone, a firm, a region, or a nation to produce one or a few interests and services.
What do you market economies?
A market thrift is a system where two parties, known as supply and demand, direct the production of goods and services. Market economies are not controlled by a central power (like a government) and are instead based on unforced exchange. Businesses market these goods and services to families in the market for goods and services. Businesses use the financial resources they buy in the demand for resources to produce goods, such as computers and bikes, and services, such as haircuts and car repairs.
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your school requires that an award be on file before you complete your agreement to serve or repay (agreement). contact your school's financial aid office for further assistance.
Students who are enrolled in an eligible program and agree to teach in a high-need field in a low-income elementary school, secondary school, or educational service agency may receive up to $4,000 per year under the non-need-based TEACH Grant program.
Within eight years of stopping enrollment at the institution where the TEACH Grant is awarded, you must have worked as a highly qualified teacher for at least four years. Before receiving a TEACH Grant for an award year, the student must sign a TEACH Grant Agreement to Serve or Repay (Agreement) outlining the service obligation requirements. They must also complete initial counseling before receiving a first TEACH Grant and follow-up counseling before receiving each subsequent TEACH Grant.
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what do you think the consequences might be in financial markets if individuals consumed more of their incomes and thereby reduced the supply of funds available to financial institutions? (select the best answers from the drop-down menus.) if individuals consume more, ▼ more fewer dollars will be available for investment. this would ▼ increase reduce the amount of money available for new projects and drive ▼ up down the required return (i.e., required return of investors to buy bonds). over time, employment, salaries, and gross domestic product would ▼
The average person spends less than they earn. The surplus is invested and made available to organizations like enterprises and governments. If people spent more of their income, financial markets may suffer as a result, reducing the amount of money accessible to financial organizations.
Any marketplace where securities are traded is referred to as a financial market, which includes, among others, the stock market, bond market, FX market, and derivatives market. The efficient operation of capitalist economies depends on the financial markets.
By allocating resources and generating liquidity for businesses and entrepreneurs, financial markets play a crucial role in facilitating the smooth running of capitalist economies. Trading financial holdings is made simple by the markets for buyers and sellers. Financial markets provide securities products that give a return to investors and lenders who have extra money and make that money available to others who need it (borrowers).
An example of a financial market is the stock exchange. Financial markets are created via the buying and selling of many different kinds of financial instruments, such as stocks, bonds, currencies, and derivatives. To ensure that the markets set prices that are effective and reasonable, financial markets primarily rely on informational transparency.
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financial accounting focuses on the needs of external users, who get accounting information from general-purpose financial statements.
Yes, the given statement is true.
Who are external users?Accounting is focused on external users. The entire purpose of financial accounting is to record business events and communicate them to external users in a meaningful way. External users rely on the financial information provided by the company because they have no firsthand knowledge of a company's financial position or future plans.
A creditor, for example, has no way of knowing the profits and liquidity of a small closely held corporation. Banks and lenders rely on the information contained in the financial statements and other financial documents provided by the company during the loan application process.
Similarly, investors have no idea how well a company is performing because they do not understand the inner workings of the operations.
Thus, Financial accounting takes into consideration the needs of external users and accordingly prepares reports.
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an audit identifies poor coding, documentation, and billing practices so that additional training and education can occur and procedures can be adjusted.
An audit identifies poor coding, documentation, and billing practices so that additional training and education can occur and procedures can be adjusted. The statement is True.
The level of patient compliance with doctor's orders has not increased as a result of personal health records. The surgery section contains the CPT codes that are used the most frequently.
According to the OIG, compliance requires doing at least one coding audit each year. Additionally, all clinicians are encouraged by the Centers for Medicare & Medicaid Services (CMS) and the OIG to routinely have their coding evaluated by an impartial party skilled in their clinical speciality.
Always keep in mind that continual improvement is the ultimate goal of every audit, regardless of its nature or scope. Your practice has the chance to discover and stop compliance and payment concerns with national payers as well as give possibilities for staff development through the audit process.
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what is the manipulation of information to create business intelligence in support of strategic decision making?
Online analytical processing (OLAP) is the manipulation of information to create business intelligence in support of strategic decision-making.
Manipulation (psychology) is conduct designed to exploit, manipulate, or in any other case have an effect on others to 1’s advantage. Definitions for the time period vary in which conduct is particularly included, stimulated through each lifestyle, and whether relating to the overall population or used in scientific contexts.
Manipulation is described as any attempt to sway a person's emotions to get them to act or sense a positive manner. Manipulators have no unusual tricks they'll use to make you sense irrational and are much more likely to offer into their requests. Some not unusual examples consist of Guilt and Complaining.
Manipulation is described as skillful management by something or a person. An example of manipulation is what is being completed by a talking vehicle salesman who convinces you to shop for a car. Sensible or devious management, especially for one's own advantage.
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accounting information is if similar items are treated the same way among various companies highlighting similarities and differences between events and conditions.
Accounting information is Comparable if similar items are treated the same way among various companies highlighting similarities and differences between events and conditions.
What is accounting information?A firm employs an accounting information system (AIS) as a framework to gather, organize, process, retrieve, and report its financial data so that accountants, consultants, business analysts, managers, chief financial officers (CFOs), auditors, regulators, and tax agencies may make use of it.
To ensure the highest level of accuracy in a company's financial transactions and record-keeping, as well as to make financial data easily accessible to those who require access to it, specially trained accountants work closely with AIS to keep data secure and intact.
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Samantha found a job with an annual salary of $100K. What is her monthly salary, rounded to the nearest dollar?
At the constitutional convention of 1787, disagreements arose between states with large populations and those with small populations. How was this conflict resolved?.
A strong central government was supported by some states while opposed by others. Small states desired equal representation in Congress with larger ones, but large states believed they should have more representation. The Great Compromise was a compromise that established two houses of Congress to ensure that both major and small states were fairly represented. Each state would be given seats in the House of Representatives in accordance to the size of its population. Regardless of size, every state would have two delegates in the Senate.
The mechanism of representation in the legislative branch was resolved by the Great Compromise. Large states preferred representation based on population, whereas small states preferred equal representation like equality by state and equality by vote. According to the agreement, the Senate had equal representation for each state. A bicameral Congress would consist of two national legislatures in accordance with the Great Compromise.
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What do you think the well known talk show personality was that started the craze to have tickle me elmo for christmas?
I think the well-known talk show personality that started the craze to have to tickle me, Elmo, for Christmas has a huge increase in demand for the one which is a previously unheralded toy.
Whenever a well-known personality talk show showed Tickle Me, Elmo, on her show where she considered it to be a cute Christmas gift, it might cause an elevated increase in demand so as for the toy which is previously unheralded. The suppliers who are not able to know this would actually become the case and so probably had ordered some of the modest amounts of the particular plush toy, as they do not want to get stuck with a large type of inventory which is usually after a Christmas selling season.
The red muppet whose first name is “Baby Monster” in 1979 tends to remain as a background character until the year 1984. That is happening when a new or deep-voiced puppeteer who is named Kevin Clash picked up him and put on the now-called famous falsetto as well as transformed Elmo's character into the most popular character ever in the show.
The promotion of the show was helped by Rosie O'Donnell who showed the toy on her wide popular TV show happened in early October. O'Donnell's special "surprise plug" was most probably shown too early to create the most unexpected demand for the character of Elmo, it depicts to be the resulting shortages undergoing in stores in case of selling products that happened two months late nearly.
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"i know headquarters wants us to add that new product line," said bella troung, manager of haley company’s office products division. "but i want to see the numbers before i make any move. our division’s return on investment (roi) has led the company for three years, and i don’t want any letdown."
ROI is a mathematical formula that investors can use to assess their investments and determine how well one investment has fared in comparison to other assets. An ROI estimate may occasionally be combined with other strategies to create a business case for a specific proposition. How well a firm is managed is measured using the overall ROI for the enterprise.
A return on investment may be determined by determining whether one or more of an organization's immediate goals—such as increasing market revenue share, developing infrastructure, or preparing the company for sale—rather than by determining immediate profit or cost savings.
Margin = Net operating income/Sales
Turnover = Sales/Operating assets
ROI = Margin*Turnover
How is ROI determined?
There are several ways to determine ROI. The most popular is ROI, which is calculated as ROI = Net income / Cost of Investment multiplied by 100.
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with this type of loan, personal property is included with the real property in the sale. it's commonly seen in commercial real estate, but you may also see this in the sale of furnished condominiums.
A package mortgage is a mortgage in which personal property or business assets are included with the real property in the sale.
Any asset that is not real estate falls under the category of personal property. The difference between personal property and real estate, or real property, is that the former is mobile; in other words, it isn't fixed in place permanently. Typically, it isn't taxed the same way as fixed property.
Some types of property, including clothing, automobiles, and household equipment, have a tendency to lose value over time. The value of other types, such artwork and antiques, may rise. Lenders may consider the total current value of a prospective borrower's personal property addition to their real property when determining their creditworthiness.
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regarding insurance company underwriting practices for health insurance, which one of the following statements is false?
The applicant's signature on the policy delivery receipt serves as the notice of the insurer's information practices in health insurance underwriting practices
The signature on the application by the applicant does not serve as notice of the insurer's information practices. Medical underwriting can be done for a person or a group, for instance, a company looking to provide coverage to its employees. Such individual evaluation would be impossible when establishing prices for a large corporation.
Insurance companies examine a candidate's medical records, lifestyle, demographic profile, and other aspects related to future and current medical needs during the underwriting process of health insurance. An assumption of the risk linked to providing healthcare coverage to that individual is calculated and priced using actuarial analysis.
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:business management systems need three major components in order to provide the services expected by today’s managers. these include::
Business management systems need three major components in order to provide the services expected by today’s managers. these include them to be leaders, moral builders, and people skills.
Who are managers?A manager can be defined as a person who is in charge of managing or looking after an organization, he is an acting leader who helps in delegating responsibilities as well as setting goals.
Also, he possesses some leadership qualities which help in running an organization smoothly.
The three qualities that the managers of today's time are incorporating are
Today's managers must possess people skills.Managers today must be true organizational leaders. Managers today are expected to inspire their teams and exhibit their morals.Learn more about manager, here:
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caliana manages the warehouse for united processors inc. at the beginning of each year, she determines the department goals for the next 12 months. which of the four management functions is she performing when she sets these goals? multiple choice question.
Planning is one of the four management functions that Caliana is performing when she sets these goal.
What is management goal?This is a term used to refer to the line of actions or programs that engages employees to enable them achieve a stated aim. the fuctions of management goal is as stated in the options
However we can conclude that Planning is one of the four management functions that Caliana is performing when she sets these goal.
complete question
Caliana manages the warehouse for United Processors Inc. At the beginning of each year, she determines the department goals for the next 12 months. Which of the four management functions is she performing when she sets these goals?
Leading
Planning
Organizing
Controlling
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true or false: the principle of customization is applicable to both service and manufacturing companies.
Answer: true
Explanation:
"The principle of customization is applicable to both service and manufacturing companies". The statement is true.
What do you mean by manufacturing company?Any company that uses components, parts, or raw materials to create finished goods is considered to be in the manufacturing industry.
These finished products may be sold to consumers directly or to other manufacturers who will use them to create a different product.
Large-scale production of goods using manual labor and/or machines to transform raw materials, parts, and components into finished goods is referred to as manufacturing.
Therefore, The statement is true. The "customization principle" is relevant to both manufacturing and service industries.
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you invest $1,400 today and expect to sell your investment for $3,200 in 10 years. a-1. calculate the present value of the future payoff if the interest rate is 8%. note: do not round intermediate calculations. round your answer to 2 decimal places. a-2. is this a good deal? b-1. calculate the present value if the interest rate is 11%. note: do not round intermediate calculations. round your answer to 2 decimal places. b-2. is this a good deal?
This is a good deal as present value at the given rate was more compared to investment.
Given:
[tex][tex]Present\;value,\;PV=\$1400[/tex][/tex]
[tex][tex]number\;of\;years,\;t=10\;years[/tex][/tex]
We know that,
[tex][tex]Future\;value,\;FV=\frac{PV}{(1+(\frac{i}{n}))^{(n \times t)}}[/tex][tex][/tex]
Let assume number of compounding period per year,
n=1
[tex][/tex](a-1)[tex]Interest\;rate,\;i=8\;\%[/tex][tex]\\[/tex]
Future value, FV=[tex]\frac{1400}{(1+(\frac{8\%}{1}))^{(1 \times 10)}}[/tex][tex]FV = \$\;1482.22[/tex](a-2)[/tex]
This is a good deal as present value at the given rate was more compared to investment.
(b-1)[tex][tex]Interest\;rate,\;i=11\;\%[/tex][tex]Future\;value,\;FV=\frac{1400}{(1+(\frac{11\%}{1}))^{(1 \times 10)}}[/tex][tex]FV = \$\;1126.99[/tex][/tex](b-2)
This is a good deal as present value at the given rate was less compared to investment.
Explain Investment?Investments are defined as assets bought or invested in with the goal of increasing wealth and setting aside funds from salary or capital gains. The main purpose of an investment is to create an additional source of income or to generate a profit over a certain amount of time.
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harry is trying to take one more class this semester. he is weighing the marginal benefit of taking one more class to the marginal cost of taking one more class. which economic concept is most closely related to harry's decision-making process? question 1 options: macroeconomics exchange rationing devices decisions made at the margin
The economic concept that is most related to Harry's style of decision-making is decision at the margin.
What is "decision at the margin"?When we make decisions at the margin, it means that we are considering the marginal aspects of the decision.
In clearer terms, we are considering things like how much the one additional unit of something will cost us, as well as what we stand to benefit from the additional unit like Harry is doing.
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durham parts (dp) makes a variety of products. it is organized in two divisions, eastern and western. the managers for each division are paid, in part, based on the financial performance of their divisions. the western division normally sells to outside customers but, on occasion, also sells to the eastern division. when it does, corporate policy states that the price must be cost plus 25 percent to ensure a "fair" return to the selling division. western received an order from eastern for 1,200 units. western’s planned output for the year had been 4,800 units before eastern’s order. western’s capacity is 6,000 units per year. the costs for producing those 4,800 units follow.
From the information provided, the unit cost that the Eastern Division should pay is $187.50.
What is the computation for that?
The South Division manager would like the North Division manager to pay the whole cost Plus 20%
= $ 150 x 25%
= $ 187.50.
As the manager of the Eastern Division, the unit cost one should argue to pay is:Per unit cost ( plus 25%)
$112.50
Because the total fixed costs stay constant regardless of output up to 6,000 units, and because they are already recovered from South Division's regular outside sales, North Division believes that a reasonable transfer price would be
$(50 + 24 + 16) x 125%
= $ 112.50.
What unit cost would you recommend for a sale of units from the Western Division to the Eastern Division?
The unit cost recommended to be charged the Eastern Division is:
$112.5
This is because the rule is reformulated to specify that the transfer price should not be larger than the receiving division's net marginal revenue, where net marginal revenue equals marginal revenue less own marginal costs.
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Full Question:
Durham Parts (DP) makes a variety of products. It is organized in two divisions, Eastern and Western. The managers for each division are paid, in part, based on the financial performance of their divisions. The Western Division normally sells to outside customers but, on occasion, also sells to the Eastern Division. When it does, corporate policy states that the price must be cost plus 25 percent to ensure a "fair" return to the selling division. Western received an order from Eastern for 1,200 units. Western's planned output for the year had been 4,800 units before Eastern's order. Western's capacity is 6,000 units per year. The costs for producing those 4,800 units follow. Per Unit Materials Total $ 240,000 $ 50 Direct labor 24 Other costs varying with output 115,200 76,800 288,000 16 60 Fixed costs (do not vary with output) Totals $ 720,000 $ 150 Required:
a. If you are the manager of the Western Division, what unit cost would you ask the Eastern Division to pay?
b. If you are the manager of the Eastern Division, what unit cost would you argue you should pay?
c. What unit cost would you recommend for a sale of units from the Western Division to the Eastern Division?
during the covid-19 pandemic, a local wine and spirits retailer faced changes in store hours, supply of and demand for its products, sanitizing protocols, and converting to drive-through, curbside, or delivery services only. during this time, the store manager, owen, shared daily updates with employees by e-mail and on posted announcements. owen also updated the store's website and social media pages regularly. in this scenario, owen was playing the role.
During the covid-19 pandemic, a local wine and spirits retailer faced changes in store hours, supply of and demand for its products, sanitizing protocols, and converting to drive-through, curbside, or delivery services only. During this time, the store manager, and owner, shared daily updates with employees by e-mail and on posted announcements. Owen also updated the store's website and social media pages regularly. In this scenario, Owen was playing the role of Disseminator
A communication protocol is a gadget of rules that permits two or greater entities of a communications gadget to transmit statistics thru any sort of variant of a bodily quantity. The protocol defines the guidelines, syntax, semantics, and synchronization of verbal exchange and possible blunders in healing techniques.
Protocols provide us with a medium and set of guidelines to set up communication among distinctive devices for the trade of records and other offerings. Protocols are wished in every subject like society, technological know-how & technology, statistics communication, media, and so forth.
A community protocol is an established set of policies that decide how data is transmitted among one-of-a-kind devices in the same community. basically, it allows connected devices to communicate with every other, irrespective of any variations of their internal tactics, shape, or layout.
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malcom is starting to turn down overtime opportunities, he has developed a personal reading list that he is working through, and he is cutting back from seven-day weeks to five-and one half day weeks. malcom is most likely working on what kind of non financial resource?
Malcolm is starting to turn down overtime opportunities, he has developed a personal reading list that he is working through, and he is cutting back from seven-day weeks to five-and-one-half-day weeks. Malcolm is most likely working on increased leisure time.
In step with your textual content, the subsequent is the high-quality definition of strain a terrible emotional state that happens whilst events are perceived as exceeding someone's assets or ability to cope. practice what you have got discovered to trade your behavior.
A gender-numerous group of workers offers easier access to sources, along with various resources of credit score, more than one asset of records, and wider industry knowledge. A gender-various workforce permits the agency to serve an increasing number of various patron bases. attaining gender equality is critical for workplaces now not simplest because it's miles 'truthful' and 'the right element to do but due to the fact it's also linked to a rustic's average monetary overall performance.
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what are the basic differences amoung single product startegy, a startgey based on relate diversification, and a one based on unrealted diversification
It is wiser to diversify your business in a way that is relevant to your current business than to do it in a way that is unrelated (entering a new industry that lacks such similarities).
single-product approach
a business approach where it only offers one product, or one product version with a limited number of possibilities. Because of the considerable risks, few businesses or organizations choose to employ this tactic (if the single product fails). A Dictionary of Business and Management, single-product strategy.
This tactic is employed to boost sales linked with an existing product line and is particularly helpful for a company whose sales have been stagnant or dropping.
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if the two countries specialize and only produce the good in which they have a comparative advantage, what is the maximum combination of potatoes and sausages they can produce together
If the two countries specialize and only produce the good in which they have a comparative advantage, 500 tons of potatoes and 200 tons of sausages.
What is produce?
Produce, which includes fruits and vegetables, is a catch-all phrase for a variety of farm-produced commodities (grains, oats, etc. are also sometimes considered produce). More specifically, the use of the word "produce" often denotes that the goods are in their original, freshest form.The phrase is also used to describe the area of a supermarket where the produce is kept. Farmers' markets and greengrocers mostly sell produce in the UK and Australia. The phrase is frequently used outside of the agricultural sector in the U.S. and Canada, but it is not frequently used in other English-speaking nations.Produce is marked with tiny stickers that have price look-up codes in some countries, including the US.
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An investment account with the same initial investment and the same apr has the most apy if the interested is compounded. True or false?.
An investment account with the same APR and the same initial investment has the most APY if the interest compounded is continuous.
A current account that is connected to a securities account is an investment account. Money is transferred using it in transactions to deposit services and securities. Particularly meant for the fund, stock, bond, and ETF transactions is an investing account.
Compound interest is when you receive interest on both your interest income and your savings. Let's imagine you invest $1,000 (your principal) and it earns 5% once a year in interest or profits (the compounding frequency)
Continuously compounded interest means that an account balance is constantly earning interest, as well as refeeding that interest back into the balance so that it, too, earns interest
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a conflict will exist between the npv and irr methods, when used to evaluate two equally risky but mutually exclusive projects, if the projects' cost of capital is less than the rate at which the projects' npv profiles cross. true false
True-No conflict will exist between the NPV and IRR methods, when used to evaluate two equally risky but mutually exclusive projects, if the projects' cost of capital exceeds the rate at which the projects' NPV profiles cross.
What is NPV and IRR methods?While the IRR approach calculates the projected percentage return, the NPV method produces the predicted dollar worth of a project.
Purpose. The breakeven cash flow level of a project is the emphasis of the IRR approach while project surpluses are the subject of the NPV method.
assistance with decisions. Since it provides a dollar return, the NPV approach delivers an outcome that serves as the basis for an investment decision. The IRR approach is not helpful in making this choice because its percentage return does not indicate to the investor how much money will be produced.
Reinvestment rate. When NPV is utilized, the firm's cost of capital is the assumed rate of return for reinvesting intermediate cash flows; when it is the internal rate of return.
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A decrease in the price of a complementary good will cause its complement’s equilibrium price to ______________ and the equilibrium quantity to ______________.
A decrease in the price of a complementary good will cause its complement’s equilibrium price to decrease and the equilibrium quantity to decrease.
Complementary goods are those that are ingested together. Substitutes are goods that can be consumed in place of the original. Prices of complementary or substitute goods also cause the demand curve to shift. When the price of a complementary good falls, the quantity demanded of one rise and the demand for the other rises. When the price of a substitute good falls, the quantity demanded for that good rises, but the demand for the good for which it is substituted falls.
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