margot company purchases $100,000 face amount, 6% semi-annual bonds for $110,000 when the market interest rate is 5%. the journal entry to record the interest for the first 6-month period includes (select all that apply.) multiple select question. debit cash $2,750 debit cash $3,000 debit discount on bond investment $250 credit interest revenue $2,750 credit interest revenue $3,000 credit premium on bond investment $250

Answers

Answer 1

The journal entry to record the interest for the first 6-month period includes:

debit cash $3,000

credit interest revenue $2,750

credit premium on bond investment $250

Where the bonds issued at premium or discount?

The bond face value was $100,000, but were issued at $110,000 which means the issue price was $10,000 more than the face value, hence, at the end of each semiannual period we mean to record amortization of bond premium.

interest for the first 6-month period=issue price*market interest rate/2

issue price=$110,000

market interest rate=5%

interest for the first 6-month period=$110,000*5%/2

interest for the first 6-month period=$2,750

semiannual coupon payment=face value*coupon rate/2

semiannual coupon payment=$100,000*6%/2

semiannual coupon payment=$3,000

bond premium amortization=semiannual coupon-interest for the first 6-month period

bond premium amortization=$3,000-$2,750

bond premium amortization=$250

The appropriate journal entries is to debit cash with $3,000 such that the interest expense and premium bond investment are credited respectively

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Related Questions

Question 26 Listen A manufacturer is considering a switch from manufacturers' representatives to an internal sales force. The following cost estimates are available. Manufacturers' reps are paid 7.9% commission and incur $645,000 in fixed costs, while an internal sales force has fixed costs projected at $2,080,000 and would receive 3.0% commission. At what sales volume would the manufacturer be indifferent between the two alternatives? Report your answer in dollars. Your Answer: Answer Question 27 4) Listen ► A manufacturer is considering a switch from manufacturers' representatives to an internal sales force. The following cost estimates are available. Manufacturers' reps are paid 8.8% commission and incur $600,000 in fixed costs, while an internal sales force has fixed costs projected at $1,750,000 and would receive 3.3 % commission. Assume that sales revenue is double the breakeven volume or the point at which the manufacturer would be indifference between reps and an internal sales force. At this volume, how much would the manufacturer save, assuming the company had switched to an internal sales force? Report your answer in dollars. Your Answer:

Answers

The manufacturer would be indifferent between manufacturers' representatives and an internal sales force at a sales volume of approximately $29,285,714.29. The savings achieved by switching to an internal sales force at double the breakeven volume can be calculated using the provided cost estimates.

To determine the sales volume at which the manufacturer would be indifferent between manufacturers' representatives and an internal sales force, we need to equate the costs of both options.

For the manufacturers' representatives:

Total cost = Commission + Fixed costs

Total cost = 7.9% of sales + $645,000

For the internal sales force:

Total cost = Commission + Fixed costs

Total cost = 3.0% of sales + $2,080,000

To find the sales volume, we set the total costs of both options equal to each other:

7.9% of sales + $645,000 = 3.0% of sales + $2,080,000

Subtracting 3.0% of sales from both sides gives:

4.9% of sales + $645,000 = $2,080,000

Subtracting $645,000 from both sides gives:

4.9% of sales = $2,080,000 - $645,000

4.9% of sales = $1,435,000

Dividing both sides by 4.9% gives:

sales = $1,435,000 / 4.9%

sales ≈ $29,285,714.29

Therefore, the manufacturer would be indifferent between manufacturers' representatives and an internal sales force at a sales volume of approximately $29,285,714.29.

For the second question, we need to find the savings achieved by switching to an internal sales force at double the breakeven volume.

Assuming the breakeven volume is the sales volume at which the manufacturer would be indifferent, which is $29,285,714.29, we can calculate the savings.

Savings = Total cost with manufacturers' reps - Total cost with internal sales force

Savings = (8.8% of sales + $600,000) - (3.3% of sales + $1,750,000)

At the breakeven volume, the sales would be $29,285,714.29:

Savings = (8.8% of $29,285,714.29 + $600,000) - (3.3% of $29,285,714.29 + $1,750,000)

Calculating this equation will give the amount saved by switching to an internal sales force.

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You bought materials for cash $2,000. Is this...
a.) Assets
b.) Liability
c.) Owner's Equity
d.) Revenue
e.) Expense

Answers

This is considered an expense.

Once you turn 18, if you choose one of the 4 options for accessing credit, how will you be sure you use that credit responsibly?

Answers

Answer:

What's the four options?

Everything you buy with your credit card will cost more because of the interest you pay. By paying off your entire balance each month, you demonstrate to lenders that you are a trustworthy borrower. Your credit score will suffer if you frequently make late payments or completely skip payments.

What accessing credit, use that credit responsibly?

Credit is intended to enhance our financial security. When handled wisely, credit can give us the opportunity to buy the items we need and want right away in situations when cash is not always an option.

Responsible behavior is undoubtedly greatly influenced by external factors, but it is also greatly influenced by social cognition and emotion. Examples include continuing to make payments on schedule, paying down debt, and taking care of past-due bills.

Therefore, Responsible behavior requires internal desire and direction, not only conformity with the law as a result of external supervision, rewards, and penalties.

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Disadvantages of choosing a job that is extremely popular or in demand

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The disadvantage of choosing a job that is very popular or a job that is in high demand is that after a while such a job may become saturated or it would become monotonous.

What is a high demand job?

This is the term that is used to refer to a job that the people that wpould employ labor are constantly in need of. Such a job is one that would require the people that have the qualification to opt in and get the places and the roles that they are to fill.

The issues that may arise from such a job that is in high demand is that after a period, such a job may have a lot of persons that would want to fulfil the role.

The number of qualified persons may become more than the job that is available for the people to do in the long run.

Hence this is a disadvantage. Therefore I would conclude by saying that the disadvantage of choosing a highly popular job is that the number of persons that are willing to fulfil the role may exceed the job overtime.

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What does the term 'user
experience' refer to regarding a
website?
A. the overall ease of navigation and ability to
purchase on a company's website
B. the general experience a customer has when
using a product of a business
C. the customer experience when dealing with
customer service representatives

Answers

Answer:b

Explanation:

Consider your decision to attend class each day or skip it. which of the four core principles of economics applies to the notion that attending class will most likely help you understand the material better and perform well on future exams?

Answers

Cost-benefit principle of economics applies to the notion that attending class will most likely help you understand the material better and perform well on future exams.

Economics is the study of scarcity and its effects on the use of resources, the creation of products and services, the development of production and welfare through time, and a wide range of other complicated topics of essential significance to society. The study of economics integrates politics, sociology, psychology, and history. There are several definitions for economics. A toolkit of abilities, strategies, and methods of reasoning that you may use to solve a variety of issues is acquired via studying economics. It is either the study of scarcity, the study of resource consumption and incentive response, or the study of decision-making. Despite not being exclusively about money, it frequently touches on matters of wealth and finance.

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A ________ brings buyers and sellers together and facilitates transactions, typically charging a fee after a transaction is completed.

Answers

A ________ brings buyers and sellers together and facilitates transactions, typically charging a fee after a transaction is completed.

A) Cash-and-carry wholesaler

B) Broker

C) Retailer

D) Wholesaler

E) Commission merchant

Answer- B) Broker

I NEED HELP ASAP please

I NEED HELP ASAP please

Answers

Auto Loan - installment, secured, fixed

Credit Cards - installment, unsecured, CBE

Mortgage - installment, secured, variable

Payday loan - CBE, secured, and CBE

Personal loan - installment, unsecured, CBE

Small businesses - CBE, unsecured, CBE

Student loan - installment, unsecured, CBE

I believe that’s right. I’m so sorry if it isn’t.

tahsin, a grocery store, markets and endorses its businesses in other countries by offering buyers the rights to launch and operate the store in that country. it lends financial and marketing assistance to the buyers. in this scenario, which strategy is tahsin employing to reach global markets?

Answers

The purchasers receive financial and marketing support from it. To access global markets in this situation, Tahsin is using outsourcing technique.

Tahsin, a supermarket chain, advertises and supports its companies abroad by selling potential customers the right to open and run the store elsewhere.  Contracting out or business process outsourcing are other names for outsourcing corporate services.

Using a sizable third-party supplier, such as FedEx Supply Chain for third-party logistics services or IBM to manage IT services, is one method of outsourcing. An established method of entering international markets is exporting. Since businesses may export their current goods rather than having to create new ones, it is seen to be lower risk and more profitable.

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MetLife was able to dramatically expand its global footprint by acquiring Alico, a global player in the insurance business, from AIG in 2010 when AIG was in financial distress. This shows that not all diversification moves erode performance.

a) true

b) false

Answers

Answer:

True

Explanation:

It is true that not all diversification erodes performance. That is it is not all diversification moves that reduces performance or destroys it. Sometimes diversification could lead to greater risks or greater costs of investment. By diversifying and acquiring Alico metlife was able to increase and expand globally

According to the concept of the invisible hand, what emerges due to the self-interested
choices of buyers and sellers in a free market?

Answers

Answer: The invisible hand is a metaphor for how, in a free market economy, self-interested individuals can promote the general benefit of society at large.

In theory, what conditions must exist to have pure competition among businesses in the same
industry? Select ALL that apply.
A. Businesses have the freedom to enter or leave the industry.
B. Businesses make and sell identical products that require no advertising.
C. Government intervention ensures that businesses in the industry stay competitive.
D. Large numbers of buyers and sellers ensure that no single group can affect product price.

Answers

Answer:

A. B. D.

Explanation:

the answer is the three letters above

Jdjdjdjdjdjfidnznsskdjfndnjzjdjdjdnsjdbe Jansen

Question Content Area To determine cash paid for income taxes for the statement of cash flows using the direct method, an increase in income taxes payable is added to the income tax expense. True False

Answers

The statement in the question is false.

When using the direct method to determine the cash paid for income taxes for the statement of cash flows, an increase in income taxes payable is subtracted from the income tax expense, not added.

If income taxes payable increase from the beginning to the end of the period, it means that the company has paid less in cash for income taxes than the income tax expense recorded on the income statement. In this case, you would subtract the increase in income taxes payable from the income tax expense to calculate the cash paid for income taxes.

On the other hand, if income taxes payable decrease from the beginning to the end of the period, it means that the company has paid more in cash for income taxes than the income tax expense recorded on the income statement. In this case, you would add the decrease in income taxes payable to the income tax expense to calculate the cash paid for income taxes.

In summary, an increase in income taxes payable is subtracted from the income tax expense when using the direct method to determine cash paid for income taxes for the statement of cash flows.

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When using the direct method to determine the cash paid for income taxes in the statement of cash flows, an increase in income taxes payable is subtracted from the income tax expense, not added. Therefore the statement provided is false.

The income tax expense represents the amount of taxes owed during a specific period.

However, not all of this expense is paid in cash during that period. Some of it may be paid in a later period, resulting in an increase in income taxes payable.

To determine the cash paid for income taxes, we need to account for changes in income taxes payable.

An increase in income taxes payable means that cash has been deferred and not yet paid.

Therefore, we subtract the increase in income taxes payable from the income tax expense to find the actual cash paid for income taxes during the period.

In summary, when using the direct method, an increase in income taxes payable is subtracted from the income tax expense to determine the cash paid for income taxes in the statement of cash flows.

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The effective operation of a firm and its supply chain is NOT as important as the design and implementation of its processes. A. True B. False

Answers

A company's supply chain and overall efficiency are NOT as crucial as the planning and execution of its business operations. It is true.

A supply chain is a group of people and businesses who work together to create products and distribute them to customers. The chain's links start with the companies that generate the raw ingredients and terminate when the van delivers the final item to the customer.

An optimized supply chain reduces costs and improves the effectiveness of the manufacturing cycle, making supply chain management an essential procedure. In order to cut costs and maintain their competitiveness, businesses work to strengthen their supply chains. A company's supply chain and overall efficiency are NOT as crucial as the planning and execution of its business operations.

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Which of the following is TRUE? *
Short term goals are typically 1 - 2 years long
An example of a goal being achievable is someone wanting it really badly
Your most expensive expenses are typically entertainment and clothing
If you are over budget, you must increase income or decrease total expenses

Answers

Answer:

increase income or decrease total expenses

Explanation:

Over budget refers to a situation where the estimated costs exceed the actual resources available or the amount allocated. Over budget is when expenses are more than allocated finances.

There are insufficient funds in an over budget. To address the insufficient funds issue, more resources must be obtained, or the expenses must be reduced.

a) Suppose you have awarded a three months contract to develop environment management system for a typical engineering enterprise. Briefly explain how you would accomplish such consulting work
b) Develop a job description for the post of environmental management officer for the engineering enterprise above

Answers

a) To accomplish a three-month contract to develop an environment management system for a typical engineering enterprise, I would follow these steps: Conduct an initial assessment of the enterprise's current environmental practices and identify areas for improvement.

b) Job Description for Environmental Management Officer: Job Title: Environmental Management Officer.

Develop a detailed plan for implementing an environment management system, including specific goals and objectives.

Develop and implement monitoring and reporting procedures to track the enterprise's progress towards achieving its environmental goals.

Conduct regular audits to ensure that the environmental management system is being effectively implemented and maintained.

Develop and deliver a plan for ongoing training and education to ensure that the enterprise's employees continue to understand and implement the environmental management system.

b) Job Description for Environmental Management Officer

Job Title: Environmental Management Officer

Job Summary:

The Environmental Management Officer will be responsible for developing and implementing an environmental management system for a typical engineering enterprise. The Officer will work with the enterprise's management team to identify areas for improvement in the enterprise's environmental practices and develop strategies to address these areas. The Officer will also be responsible for conducting training and education programs for the enterprise's employees and monitoring the enterprise's progress towards achieving its environmental goals.

Key Responsibilities:

Conduct an initial assessment of the enterprise's current environmental practices and identify areas for improvement.

Develop and implement an environmental management system that includes policies, procedures, and practices for managing the enterprise's environmental impacts.

Collaborate with the enterprise's management team to identify opportunities for reducing the enterprise's environmental impact.

Stay up-to-date with developments in environmental management and reporting practices.

Maintain accurate records of the enterprise's environmental performance and progress towards its goals.

Qualifications:

Bachelor's degree in environmental science, engineering, or a related field.

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8. The five-step procedure to analyze the effects of an event on a good's (i) price and (ii) quantity.

Answers

The five-step procedure to analyze the effects of an event on a good's price and quantity includes Step 1: Determine the direction of the shift in supply or demand. Step 2: Determine whether the shift affects supply or demand. Step 3: Determine the direction of the shift in supply or demand. Step 4: Determine the direction of the change in equilibrium price and quantity. Step 5: Graph the results.

The five-step procedure to analyze the effects of an event on a good's price and quantity includes: Step 1: Determine the direction of the shift in supply or demand. When a non-price determinant changes, it causes either the supply or demand curve to shift. The first step is to identify the direction of the shift in either supply or demand. Step 2: Determine whether the shift affects supply or demand. The next step is to determine whether the shift affects supply or demand. Step 3: Determine the direction of the shift in supply or demand. The third step is to determine the direction of the shift in either supply or demand. Step 4: Determine the direction of the change in equilibrium price and quantity. The fourth step is to determine the direction of the change in equilibrium price and quantity, either increase or decrease. Step 5: Graph the results. Finally, graph the changes to visualize the changes in price and quantity.

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what are some good reasons to become a illustrator

Answers

Answer:

able to create anything on a daily basis, sketch, and you can also get really big rewards from it

Match each business management role to its corresponding description.

Match each business management role to its corresponding description.

Answers

Answer:

Explanation:

1.) 3

2.) 4

3.) 2

4.) 1

The role of Chief operating officer is to develop policies and structure to protect company data. The appropriate response is statement 3.

Who is a Chief operating officer ?

A Chief Operating Officer (COO) is a corporate leader who is in charge of managing a company's continuing business operations. The COO is often the company's second-in-command and reports to the CEO. Chief Operations Officer, Operations Director, and Director of Operations are other titles for the COO.

The CEO is in charge of managing all resources and overseeing the staff, with the COO serving as his or her deputy. In all business meetings and management decisions, the CEO represents the company. The COO manages revenue, expenses, task distribution, client happiness, and efficiency.

The appropriate responses are

3421

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Meet Megan: Lives in a suburb of San Jose, CA and is trying to decide between San Jose State University and Santa Clara University Both are close to home, but she wants to live on campus instead of with her mother and stepfather She came across the Consumer Financial Protection Board’s school comparison tool and decides to input her numbers Qualifies for in outside scholarships won through an essay contest Has saved $1500 she can contribute toward tuition; her parents cannot afford to help Got $3000 in Perkins loans, $3000 in Federal Subsidized loans, and $2500 in Federal Unsubsidized loans Is going to take any of the remaining balance in private loans at an interest rate of 7. 9% How much debt will she have at graduation for San Jose State University? What will her monthly loan payment be?

Answers

Megan's monthly loan payment, we need additional information about the repayment term and interest rate for her private loans. Once these details are provided, we can calculate her monthly payments based on the loan amount and interest rate.

Megan, a resident of a San Jose suburb, is considering attending either San Jose State University or Santa Clara University. As she prefers living on campus rather than with her parents, Megan decides to utilize the Consumer Financial Protection Board's school comparison tool to evaluate her options. She qualifies for outside scholarships won through an essay contest and has $1,500 in savings to contribute towards tuition. Her parents are unable to provide financial assistance. Megan secures $3,000 in Perkins loans, $3,000 in Federal Subsidized loans, and $2,500 in Federal Unsubsidized loans. To cover the remaining balance, she plans to take out private loans with an interest rate of 7.9%.

At graduation from San Jose State University, Megan's total debt is estimated to be the sum of her loans, which amounts to $10,000 in Perkins loans, $3,000 in Federal Subsidized loans, $2,500 in Federal Unsubsidized loans, and the private loans she takes out. The debt from private loans will depend on the amount Megan borrows.

To determine Megan's monthly loan payment, we need additional information about the repayment term and interest rate for her private loans. Once these details are provided, we can calculate her monthly payments based on the loan amount and interest rate.

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Write a scenario that will help you understand the following word or topic and show me that you understand their importance.

Criticism - is the practice of judging the merits and faults of something. Criticism as an
evaluative or corrective exercise can occur in any area of human life. In specific areas of
human endeavor, the form of criticism can be highly specialized and technical; it often requires professional knowledge to understand the criticism.

Answers

Criticism is the practice of judging the merits and faults of something. Criticism as an evaluative or corrective exercise can occur in any area of human life.

Write a scenario that will help you understand criticism?

You are a film director and your latest film has just been released. You're excited to see what people think of your work, but when you read the reviews, you are met with a lot of criticism. Some reviewers claim the acting was lackluster, others say the plot was confusing, and a few even say that the special effects were underwhelming.

At first, you feel disheartened and defensive. But after some reflection, you realize that criticism can be a valuable tool for growth and improvement. You start to take the criticism seriously and use it to inform your future work. You work on improving your acting direction, make sure that your plots are clearer, and pay more attention to the special effects.

A year later, you release a new film and it is met with widespread praise. Critics call it a major improvement over your previous work and praise the acting, plot, and special effects. You realize that criticism is an important part of the creative process and can help you become a better filmmaker.

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(1). Five {5} advantages of manual office equipment
(2). Five {5} disadvantage of manual office equipment

Answers

   Advantages of manual office equipment:

       Low cost

       No electricity needed

       Durable and reliable

       Simple to use and maintain

       Portable

   Disadvantages of manual office equipment:

       Time-consuming and physically demanding

       Limited capabilities compared to electric equipment

       Inaccurate results

       Dependent on operator's skill

       Not suitable for heavy-duty tasks

the development of team roles arises from the ______ of the team, the organization, and the team members themselves.

Answers

Answer:Expectations

Explanation:

detroit bike is located in the united states, assembles its product in the united states, but imports components from china and other countries. which best describes detroit bikes?

Answers

Detroit Bikes is an example of a transnational business. A transnational business is a company that operates in multiple countries, sourcing and selling products around the world.

Detroit Bikes sources components from China and other countries, and assembles its products in the United States, creating a global network for its products.

A person who produces items or provides services with the intention of selling them for a profit is engaging in business. Enterprise Definition. An innovative company or group that engages in professional activities is referred to as a business.

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ITS BUSINESS!! Someone help I literally dont know how to do it I have tried over a thousand times trying to figure it out (I will give brainiest I need explanation)

ITS BUSINESS!! Someone help I literally dont know how to do it I have tried over a thousand times trying

Answers

When utilizing Last-In, First-Out (LIFO), the inventory cost is $33,500; when using First-In, First-Out, it is $29,500; and the weighted average cost is $2515.15.

The weighted cost method is what?

You may calculate the average cost of your inventory, per unit, using the weighted average cost method. The cost of goods sold (COGS) divided by the total number of items in your inventory will give you the WAC.

What are the FIFO and LIFO accounting techniques used for?

The Last-In, First-Out (LIFO) methodology is based on the notion that the most recent or most recent unit to enter inventory is sold first. According to the First-In, First-Out (FIFO) methodology, the oldest item in inventory should be the first to be sold.

Particulars                               Purchase            amnt     sales     amnt

Inventory                                 5  X $2,400       12,000

Purchases                               18 X $2,500       45,000

Purchases                               10 X $2,600       26,000

Sold                                                                                   5X 2,400  12,000

                                                                                          7X 2,500  17,500

First in and first out= $12,000 + $17,500= $29,500

Particulars                               Purchase         amnt     sales         amnt

Inventory                                 5  X $2,400     12,000

Purchases                               18 X $2,500     45,000

Purchases                               10 X $2,600      26,000

Sold                                                                                 10X 2,600   26,000

                                                                                        3 X 2,500    7,500

Last in, first out= $26,000 + $7,500= $33,500

Weighted average cost method= Cost of goods available for sale / Units available for sale

Weighted average cost method= $83,000 / 33= $2515.15

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An investment of 1 will double in 15.142 years at a force of interest, δ. An investment of 1 will increase to 3 in n years at the same force of interest. Find n to the nearest whole number.

Answers

Answer:

24 years

Explanation:

Nper = 15.142

PMT = 0

PV = 1

FV = 2

Type = 0

Rate = Rate(Nper, pmt, -pv, fv, type)

Rate = Rate(15.142, 0, -1, 2, 0)

Rate = 4.68%

Rate = 4.68%

PMT = 0

PV = 1

FV = 3

Type = 0

NPER = NPER(rate, pmt, -pc, fv, type)

NPER = NPER(0.04684, 0, -1, 3, 0)

NPER = 24 years

What kind of lights can be used to highlight merchandise while leaving the rest of the display space dimly lit or dark? _______ can be used to highlight merchandise while leaving the rest of the display space dimly lit or dark.

Answers

Answer:

Accent light can be used to highlight merchandise whilst keeping other space dark.

Explanation:

Answer:

Spotlights

Explanation:

The assembly line changed automobile production methods because: (A)Workers decided what tasks they would perform during the workday. (B)The parts to be worked on were brought to the workers on a moving belt. (C)Workers moved from one car to the next and performed a small task on each one. (D)It enabled each worker to assemble a larger portion of an entire car.

Answers

Answer:

d

Explanation: hi

Suppose the own price elasticity of demand for good X is −4, its income elasticity is 3 , its advertising elasticity is 2 , and the cross-price elasticity of demand between it and good Y is −4. Determine how much the consumption of this good will change if: Instructions: Enter your responses as percentages, If you are entering a negative number, be sure to use a (−) sign. a. The price of good X decreases by 6 percent. percent b. The price of good Y increases by 7 percent. percent c. Advertising decreases by 4 percent. percent d. Income increases by 3 percent. percent

Answers

The percentage change in quantity demanded of good X = 3*3% = 9%.

Given data: Own price elasticity of demand for good X is -4Income elasticity is  3Advertising elasticity is 2 Cross-price elasticity of demand between it and good Y is -4. a. The price of good X decreases by 6 percent.

Ans. We know that the own price elasticity of demand is -4. So the percentage change in quantity demanded will be 4 times greater than the percentage change in price. The price of good X decreases by 6 percent. Thus the percentage change in price = -6%*4 = -24%.So, the quantity demanded will change by 24%.b.

The price of good Y increases by 7 percent. Ans. The cross-price elasticity of demand between good X and good Y is -4. So, the percentage change in quantity demanded of good X will be 4 times the percentage change in price of good Y. The price of good Y increases by 7 percent. So, the percentage change in price = 7%.

Thus, the percentage change in quantity demanded of good X = -4*7% = -28%.So, the quantity demanded of good X will change by -28%.c. Advertising decreases by 4 percent.Ans. The advertising elasticity is given to be 2. Thus, the percentage change in quantity demanded of good X will be 2 times the percentage change in advertising. Advertising decreases by 4 percent. So, the percentage change in advertising = -4%.

Thus, the percentage change in quantity demanded of good X = -2*4% = -8%.So, the quantity demanded of good X will change by -8%.d. Income increases by 3 percent.Ans. The income elasticity is given to be 3. Thus, the percentage change in quantity demanded of good X will be 3 times the percentage change in income. Income increases by 3 percent. So, the percentage change in income = 3%.

Thus, the percentage change in quantity demanded of good X = 3*3% = 9%. So, the quantity demanded of good X will change by 9%.

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Suppose that the price of a sedan decreased from $20,000 to $15,000. This would cause amovement along the demand curve.

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it would because it would be increasing sales
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