b) price to rise.
c) price to fall.
d) quantity demanded to increase.
Answer:
The correct answer is option (B).
Explanation:
According to the scenario, the most appropriate answer is option (B) because when there is a shortage of a product, the demand for the product remains the same and hence this can result in price to rise of that product.
While the other options are not correct because of the following reasons:
In a scenario where there is a shortage of a product in an unregulated market, there is a tendency for the price to rise. This happens because of the increased competition among buyers for limited goods, demonstrating the principles of supply and demand.
When a product is in short supply and the market is unregulated, the market mechanism will respond in such a way that there is a tendency for the price to rise. This happens because the shortage of product creates competition among buyers, which drives the price up. This concept is a fundamental principle of supply and demand. When demand exceeds supply, prices naturally tend to go upward in an unregulated market until equilibrium is reached. Hence, the correct answer is b) price to rise.
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Answer:
Explanation:
The adjusting entry is shown below:
Deferred Subscription Revenue A/c Dr $12,000
To Subscription revenue A/c $12,000
(Being the deferred subscription amount is adjusted)
The computation is shown below:
= Number of subscriptions sold × sale price each × (number of months ÷ total number of months in a year)
= 400 subscriptions × $90 × (4 months ÷ 12 months)
= $36,000 × (4 months ÷ 12 months)
= $12,000
The four months are reported from the September 1 to December 31