In the LMK partnership, Luis’s capital is $41,800, Marty’s is $50,300, and Karl’s is $30,800. They share income in a 4:1:1 ratio, respectively. Karl is retiring from the partnership.
Required:
Prepare journal entries to record Karl’s withdrawal according to each of the following independent assumptions:
a. Karl is paid $38,500, and no goodwill is recorded.
b. Karl is paid $43,800, and only his share of the goodwill is recorded.
c. Karl is paid $34,500, and all implied goodwill is recorded

Answers

Answer 1

a. Debit: Karl's Withdrawal A/C $38,500 Credit: Cash A/C $38,500

b. Debit: Karl's Withdrawal A/C $43,800 Credit: Cash A/C $38,416.67 and Goodwill A/C $ 5,383.33

c. Debit: Karl's Withdrawal A/C $34,500 Credit: Cash A/C 14,533.31 Goodwill A/C $10,583.36 , Luis's Capital A/C $ 6,133.33, Marty's Capital A/C $ 3,250.00

a. Karl is paid $38,500, and no goodwill is recorded.

Karl's withdrawal amount = $30,800

Luis's capital share = $41,800 / 6 = $6,966.67 per unit

Marty's capital share = $50,300 / 6 = $8,383.33 per unit

Karl's capital share = $30,800 / 6 = $5,133.33 per unit

Total capital units = 6 (4 for Luis, 1 for Marty, and 1 for Karl)

Karl's share of income = $125,000 × 1/6 = $20,833.33

To record Karl's withdrawal:

Karl's Withdrawal A/C $38,500

Cash A/C $38,500

b. Karl is paid $43,800, and only his share of the goodwill is recorded.

Karl's withdrawal amount = $30,800 + $5,133.33 = $35,933.33

Luis's goodwill share = ($6,966.67 - $5,133.33) × 4 = $6,133.33

Marty's goodwill share = ($8,383.33 - $5,133.33) × 1 = $3,250

Total implied goodwill = $9,383.33

To record Karl's withdrawal and his share of the goodwill:

Karl's Withdrawal A/C $43,800

Cash A/C $38,416.67

Goodwill A/C $ 5,383.33

c. Karl is paid $34,500, and all implied goodwill is recorded.

Karl's withdrawal amount = $30,800 + $5,133.33 = $35,933.33

Total implied goodwill = ($6,966.67 - $5,133.33) × 4 + ($8,383.33 - $5,133.33) × 1 = $10,583.36

The cash account will be credited by (34500-19,966.69) = 14,533.31

To record Karl's withdrawal and all implied goodwill:

Karl's Withdrawal A/C $34,500

Cash A/C $14,533.31

Goodwill A/C $ 10,583.36

Luis's Capital A/C $ 6,133.33

Marty's Capital A/C $ 3,250.00

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Related Questions

In the absence of urban manufacturing jobs, low wage service sector jobs have emerged to meet the needs of corporations. Low wage service jobs often face some of the lowest wages and poorest working conditions. People employed in these occupations are described as:

Answers

People employed in these occupations are described as low-skilled minorities .

What is spatial mismatch hypothesis?

The spatial mismatch hypothesis (SMH)  serves as an a hypothesis that stressed  that low-skilled minorities residing in US inner cities experience poor labour market outcomes.

And this case,  they are disconnected from suburban job opportunities, hence  and they experience, Low wage service jobs often face some of the lowest wages and poorest working conditions.

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If you were assisting one customer and a second customer came up demanding your attention, what would you do

Answers

If we were assisting one customer and a second customer came up demanding our attention, we should Tell them that we are busy with the existing customer and instruct him where to find another team member or customer service to get immediate attention.

Customer service refers to the one-on-one conversations that take place between a buyer and a salesperson directly from a business. In the opinion of the majority of merchants, this one-on-one contact is essential to ensuring customer happiness and promoting repeat business.

The ability to communicate with a human being is still regarded as essential by most organizations even in this day and age, when much of customer service is handled by automated self-service platforms. In terms of servant leadership, it is essential.

Every customer service business can be destroyed by poor management. Several crucial pointers for managers include: Ensure that your customer support staff is well-informed, up-to-date, and familiar with the company's goods and policies. Make sure your customer service is a benefit to the business by periodically evaluating it.

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Most companies with well-developed project management systems insist that a project must pass an approval of some kind to move from one life cycle stage to the next. Group of answer choices True False

Answers

True

What is project management life cycle?

A project is guided through the project management lifecycle, which is a step-by-step structure of best practices. It offers project managers a methodical way to plan, carry out, and complete a project.

The four phases of this project management process are initiating, planning, executing, and closing. A project team boosts its chances of success by following each stage.

Initiation:

You will establish the project during the initiation phase. You will determine the project's objectives, scope, available resources, and team member roles. The project and team will have clear direction if stakeholders' expectations are made explicit, along with the specific goals of the project and their justifications.

Planning:

You'll decide the steps to really accomplish the project goals during the planning phase. You'll set up spending limits, deadlines, and checkpoints, as well as the sources and required paperwork. This step also entails estimating and forecasting risk, implementing change management procedures, and laying out communication guidelines. Choosing what to do with your troops is the planning phase's equivalent of gathering your forces during the initiation phase.

Execution:

A project's execution entails carrying out your plan and directing the crew. For the most part, this entails monitoring and measuring progress, maintaining quality, reducing risk, managing the budget, and using data to guide your decisions.

Closing:

You'll wrap up project activities during the closing phase of the project management lifecycle, hand the final good or service on to the new owners, and evaluate what went well and what didn't.

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Large conglomerates that combine many different financial institutions within a single corporation are known as________.

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Large conglomerates that combine many different financial institutions within a single corporation are known as  financial services corporations. a company that offers a variety of financial services, such as commercial banking, insurance, and brokerage. The economy is divided into a number of distinct categories known as sectors.

These industries are made up of various businesses that provide consumers with goods and services. Institutions in the same industry are grouped together because they offer comparable goods or services. Businesses that provide agricultural services, for example, make up the agricultural industry. Businesses that provide mobile or cellular telephone services are classified in the telecommunications industry.

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A car dealer advertises a rock-bottom price for a sports utility vehicle that usually goes for $1,000 or more. When you get to the dealership, though, the salesperson can't find that particular car on the lot. Maybe it was sold this morning before he got in. The salesperson offers a higher-priced car. This is called _______.

Answers

The salesperson offers a higher-priced car. This is called Bait Pricing.

What is Bait Pricing?Bait pricing is a marketing technique that involves tricking consumers into believing they will have to pay less for a more expensive product. The phrase "bait-and-switch pricing" is shortened to this. This strategy promotes prices that are frequently unexpectedly cheap, or at least significantly lower than those that are typically offered in the market. Many times, a company would promote a product at an extremely low price just to later admit that the original item displayed is not actually available. It might be replaced with a more expensive alternative. There are various situations when the use of bait pricing can result in legal action.

Rock-bottom price is the lowest level price of the sports utility level. The car dealer advertises the vehicle at that price. And after going through the advertisement, getting the dealership, the salesperson can't find that particular car, this is called Bait Pricing.

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You notice that when a new yoga class is offered at the student recreation center at a highly desirable time, some students from the other yoga classes go to the new class instead. This statement best represents this economic concept:

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You notice that when a new yoga class is offered at the student recreation center at a highly desirable time, some students from the other yoga classes go to the new class instead. This statement best represents this economic concept people usually exploit opportunities to make themselves better off.

Recreation includes all of the pursuits people make for the purpose of renewing their bodies and brains and adding interest and enjoyment to their free time. Exercises like walking, swimming, meditating, reading, playing games, and dancing are examples of leisure activities.

At its most fundamental level, economics aims to explain how and why we choose the products we do. Scarcity, supply and demand, costs and benefits, and incentives are four fundamental economic ideas that can be used to explain a variety of human decisions.

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A company currently has 500 items in inventory. The demand for the next 2 months is 900 and 1200 units. Assuming a level production rate of 1000 units per month, determine the ending inventory at the end of the second month.

Answers

The ending inventory at the end of the second period is 400 units

What is ending inventory?

Ending inventory means the quantity of stock left unsold at the end of a period.

It is determined as beginning inventory plus production units minus quantity sold or demanded.

Ending inventory first month=500+1000-900

Ending inventory first month=600

Ending inventory second month=600+1000-1200

Ending inventory second month=400

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A group of nations or companies that band together to act as a monopoly is known as a(n)_____cartel.

Answers

It is known as cartel.

A cartel is a group of separate firms or organizations that band together to fix the price of a product or service. Cartels compete in the same industry and strive to minimize competition by setting prices in accordance with one another.

Cartels employ tactics such as supply reduction, price fixing, collusive bidding, and market carving. Cartels are regarded unlawful and advocates of anti-competitive behavior in the majority of regions. Cartel actions typically harm customers through rising pricing and a lack of transparency.

Therefore, the answer is cartel that creates monopoly.

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At month-end, cost of merchandise sold is $192,150 and gross profit is $168,190. determine sales for the month.
a. $360,340
b. $23,960
c. $168,190
d. none of these choices are correct.

Answers

At month-end, the cost of merchandise sold is $192,150 and gross profit is $168,190. the sales for the month are option (d), none of these choices are correct.

All direct costs and expenses incurred in manufacturing or delivering your goods and services are referred to as the cost of goods sold. It excludes indirect expenses like staff pay, advertising, and marketing.

The total amount of money your business makes from the selling of its goods or services is known as revenue. It makes it evident how much revenue you're generating from all of your sales. It excludes operating expenses for your company, such as taxes, interest, and depreciation.

The money remaining from the sale of your goods or services after operating costs incurred to produce them are subtracted is measured by the gross profit margin calculation. The cost of goods sold is subtracted from total revenues to determine gross profit.

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True or false: one reason for the growth of sponsorships has been the need for companies to break through the clutter of advertising.

Answers

It is True that one reason for the growth of sponsorships has been the need for companies to break through the clutter of advertising.

What is the purpose of sponsorships in a firm?

sponsorships is essential for the firm because it will help them to be able to sponsor their advertisement of their brand so as to bring more profit.

In this case, It is True that one reason for the growth of sponsorships has been the need for companies to break through the clutter of advertising.

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A(n) __________ is an intangible product or action that consumers, firms, or governments wish to purchase.

Answers

Answer: service

Explanation:

A(n) service is an intangible product or action that consumers, firms, or governments wish to purchase.

Good is a tangible item that businesses, governments, or consumers want to buy.

A service is an immaterial good or action that businesses, governments, or individuals would like to pay for.

A resource is anything used in the production of goods and services, whether it be a product of manufacture, a gift from nature, or the outcome of human labor.

A market is any location or method whereby buyers and sellers transact in order to exchange products, services, or resources.

Hence, the blank is to be filled by the word service.

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Imagine you run an online art supply store. You are looking to increase awareness of online purchases by 5 percentage points among the target audience within three months. Which test would best measure this goal

Answers

If you are trying to increase the awareness of online purchases in your online art supply store, the best test to measure this goal is a Brand Survey test.

What is a brand survey test?

A brand survey test allows for a company or individual to find out the popularity of a brand they are selling, a promotion being offered, or the entire business itself.

If you need to find out just how popular the goods sold at the online art supply store are, the brand survey test would be best as it would show if there is an increase in the number of people who know the store.

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Gene works in the uniform and apparel division of cintas. He has responsibility for managing the marketing activities for uniforms aimed at restaurants and dining facilities. Gene’s title is _______.
a. product manager.b. market manager.c. area coordinator.d. brand manager.e. sales manager.

Answers

Gene’s title is b. market manager .

A Marketing manager is chargeable for constructing and retaining a sturdy and regular emblem via a huge variety of online and offline advertising channels. The song examines the overall performance of advertising campaigns, controls the advertising, and makes certain that all advertising is consistent with brand identification.

Marketing Managers are chargeable for developing, implementing, and executing strategic advertising plans for a whole corporation (or lines of business and brands inside an employer) with the purpose to attract potential customers and keep existing ones.

Advertising managers normally want at least a bachelor's diploma. a few employers do not require precise training, however many pick an advertising or commercial enterprise diploma. era training and expertise in design and media manufacturing can also help candidates stand out. Managers normally need advertising and marketing revel in.

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Conservative republicans wanted to use tariffs to protect american industry fro?

Answers

Republican conservatives using tariffs to defend american business against overseas rivalry. Any antitrust, competition, or trade regulation laws of a government authority of country other than United States are considered foreign competition laws. Increases in import tariffs are primarily to blame for the loss of jobs in these two sectors.

These two business both require more capital, indicating that domestic production is inefficient due to international competition for market share, raises costs and results in job losses. Particularly, import tariffs compels domestic innovators to make a decision between accelerating their pace of innovation or losing market share to foreign innovators.

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Investors can postpone or avoid income taxes by investing through individual retirement accounts.

a. True
b. False

Answers

True. Investors can postpone or avoid income tax by investing through individual retirement accounts. Tax-deferred and tax-exempt retirement accounts are two most popular options for lowering tax obligations. Both forms of retirement accounts reduce total amount of taxes a person will pay throughout their lifetime.

Immediate tax deductions up to the full amount of contribution in tax-deferred accounts is allowed. Money in account continues to grow tax-free. Instead of offering tax reductions on donations, tax-exempt accounts offer future tax benefits.

Tax is not applied to retirement accounts. Maximizing contributions to both types of accounts can be the best tax-savings plan.


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A janitor earns less than a school principal. functionalist sociologists might argue this difference in income:_______

Answers

The correct answer is to ensure that most talented people hold higher positions in society. Functionalism is a social science theory that holds that all aspects of a society in institutions, roles, norms, and so on to serve a purpose and are necessary for society's long-term survival.

A social system or society is assumed to have functional unity, in which all system components cooperate with some degree of internal consistency. Functionalism also holds that all cultural or social phenomena serve a useful purpose and are therefore necessary.

In functionalism, there is a particular emphasis on society's stability, integration, and effectiveness.

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How much did the quantity of lemons increase if the price elasticity of supply of lemons is 222, and how is that elasticity interpreted

Answers

The increase in quantity of lemons would also depend on the change in price, given that the price elasticity of supply is 222.

What is price elasticity?Price elasticity of demand measures how much a product's consumption changes in response to price changes. Price elasticity is a tool used by economists to analyze how supply and demand for a product fluctuate in response to price changes. The pricing of some items are particularly inelastic, according to economists. In other words, neither a price decrease nor an increase in price significantly affect demand. For instance, the price-elasticity of demand for gasoline is low. Drivers, as well as airlines, the trucking industry, and practically every other buyer, will continue to make as many purchases as necessary.

Mathematically expressed, Price Elasticity of Demand = Percentage Change in Quantity Demanded / Percentage Change in Price.

Therefore, The increase in quantity of lemons would also depend on the change in price.

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Answer:

20% elastic

Explanation:

It is the correct answer trust me I am not lying to you. You will get it correct.

What is the main goal of real estate investing?

Answers

Answer:

The big goal of real estate investing is to increase your cash, otherwise known as building capital.

line Construction is an all-equity firm that has projected perpetual earnings before interest and taxes of $628,000. The current cost of equity is 17.6 percent, and the tax rate is 25 percent. The company is in the process of issuing $4.3 million of 8.3 percent annual coupon bonds at par. What is the levered value of the firm

Answers

The Levered Value of the Firm is $3,824,318.

What is Equity?Equity, also known as shareholders' equity or owners' equity for privately held businesses, is the sum of money that would remain in the hands of a company's shareholders in the event that all of its assets were sold off and its liabilities were fully settled. It is the worth of company sales less any obligations owing by the company that were not transferred with the sale in the case of an acquisition. Additionally, a company's book value may be represented through shareholder equity. Equity may occasionally be given in exchange for cash. Additionally, it symbolizes the proportionate ownership of a company's shares.

VU = [$628,000 x (1-.35)/.176 = $2,319,318

Levered cash flow is the amount of money left over after a company has paid its debts. Unlevered free cash flow is the amount of money available to the company prior to meeting its debt obligations.

The levered value of the firm is:

VL = $2,319,318 + (.35 x $4,300,000) = $3,824,318

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A fifty-unit apartment building has a 4. 5-kw electric clothes dryer in each apartment. By using the optional method, what is the service demand load?

Answers

The demand load is 58.5 kw.

Given 4.5kw electric cloth dryer.

Service demand load is to be computed.

The operational load (including any tactical load) and nonoperational demand loads are added together to form the demand load. It is calculated by adding the appropriate demand factor to each linked load and a diversity factor to the total.

According to the national electrical code, a building with 50  units the demand factor is  26%.

Now demand load = 4.5kw × 50 × 26%

                             =4.5kw×50 × 26/100

                             = 58.5 kw

Therefore, the demand load is 58.5kw

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Another partner feels that this arrangement will compromise her autonomy and feels that it will look as if the office is associated with the pharmacy even if it is not. Everyone agrees that the overhead costs need to be reduced. What is the right thing to do

Answers

The right thing to do when a conflict of interest arises among business partners is to find a compromise.

What is a Conflict of Interest?

This refers to the situation where an individual's personal interests are in conflict with his judgments and actions in a workspace.

Hence, we can see that although your question is incomplete, I can infer that there is a conflict of interest among business partners and it would help to retain the autonomy of the partners if a compromise is reached.

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A product whose revenues do not cover the sum of its variable costs, its traceable fixed costs, and its allocated share of general corporate administrative expenses should usually be dropped. Group startsTrue or FalseTrue, unselectedFalse, unselected

Answers

The statement is false.

What is the cost?

Any expense a company faces when producing its products or performing its services is referred to as a cost.

What do you understand by variable and fixed costs?

Any expenses that vary according to how much a business produces and sells are considered variable costs. As a result, variable costs grow with rising production and diminish with falling production.Contrarily, fixed costs are those outlays that don't change regardless of how much a business produces.

What is the Revenue?

The total income derived from the sale of products or services about a business's core operations is referred to as revenue.

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Amanda can only engage her employees in three of the five levels of decision making. Which of the following levels should she allow them to participate in?

Answers

She should allow them to participate in Generating alternatives, Planning implementation, and Evaluating results.

1. Generating alternatives:

The degrees of decision-making among the staff members are:

Employees research the issue and propose potential remedies, from which one or more are chosen by their superiors.

2.  Planning implementation -

When a solution is determined by managers or leaders to be the most profitable one, employees collaborate to plan its execution.

Explanation:

When a solution is determined by managers or leaders to be the most profitable one, employees collaborate to plan its execution.

3. Evaluating results -

Employees might be involved in the evaluation of results against the standards and goals they have taken into consideration once the solution has been put into place.

Employees are not actively participating in the other two levels of decision-making, namely identifying the issue and choosing solutions.

Instead, the manager or leader is responsible for these two levels.

Explanation: Please refer to the solution in this step.

Answer: Employees are not actively participating in the other two levels of decision-making, namely identifying the issue and choosing solutions.

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The correct option for which of the three levels out of five levels of decision making she should allow them to participate in are: B. Generating Alternatives, D. Planning implementation, and E. Evaluating results

1. Generating alternatives:

The degrees of decision-making among the staff members are:

Employees research the issue and propose potential remedies, from which one or more are chosen by their superiors.

2. Planning implementation -

When a solution is determined by managers or leaders to be the most profitable one, employees collaborate to plan its execution.

3. Evaluating results -

Employees might be involved in the evaluation of results against the standards and goals they have taken into consideration once the solution has been put into place.

Employees are not actively participating in the other two levels of decision-making, namely identifying the issue and choosing solutions.

Instead, the manager or leader is responsible for these two levels.

Employees are not actively participating in the other two levels of decision-making, namely identifying the issue and choosing solutions.

Your question is incomplete. Please read below for the missing content.

Amanda can only engage her employees in three of the five levels of decision-making. Which of the following levels should she allow them to participate in? Check all that apply.

A. Identifying the problem

B. Generating alternatives

C. Selecting solutions

D. Planning implementation

E. Evaluating results

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Most of the states and the federal government have enacted statutes to protect employees who report wrongdoing from employer retaliation. Group of answer choices False True

Answers

The given statement that most of the states and the federal government have enacted statutes to protect employees who report wrongdoing from employer retaliation is True.

Whistleblower in InstitutionsA whistleblower is someone who discloses knowledge regarding action inside a private or public institution that is thought to be unlawful, immoral, criminal, dangerous, or fraudulent. They are frequently employees. Whistleblowers can share information or accusations through a variety of internal or external avenues.Whistleblowing is the act of an employee reporting misconduct that they feel is in the public interest. Examples of whistleblowing include theft and other types of criminal activities as well as unethical or unfair workplace behavior.A total of 40 federal legislation have been passed to safeguard the public and informants. Additionally, the majority of states have laws protecting public sector workers from being fired for filing complaints about misconduct by their employers, and about half of all states have laws protecting whistleblowers in both the public and private sectors.

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One way to eliminate intermediate goods from the measure of gdp is to subtract from the measure of all output the:_______

Answers

When calculating GDP intermediate goods are eliminated to avoid double counting of goods, as already the input is added which includes these intermediate goods.

What is GDP?

GDP stands for Gross Domestic Product. It is the total production of a country and is very essential in growth of a country, developing or poor countries generally have a lower GDP as compared to developed countries.

The amount of intermediate goods can be subtracted from output total to formulate the figure of GDP.

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Based on angelique’s busy lifestyle, which other consequences might she experience? check all that apply. less appetite dozing off in class more likely to get sick being bullied getting distracted

Answers

Based on Angelique’s busy lifestyle,  other consequences might she experience are

dozing off in classmore likely to get sickgetting distracted

This is further explained below.

What is lifestyle?

Generally, The three pillars upon which a healthy lifestyle is built are proper diet, regular physical activity, and sufficient rest. Maintaining a healthy lifestyle keeps you fit, gives you more energy, and lowers the chance of developing the illness. The World Health Organization defines healthy living as a manner of life that enables one to take pleasure in a greater variety of life experiences.

What is bullying?

Research on bullying has, historically speaking, been dominated by large-scale cohort studies that have mostly focused on the personality features of bullies and victims. The prevalence of bullying, risk and protective variables, as well as the damaging effects of bullying, are the subjects of this research.

In conclusion, Other potential repercussions of Angelique's hectic lifestyle include falling asleep in class, an increased risk of becoming ill, and a heightened propensity to get distracted.

Complete Question

Angelique is a high school sophomore. She has a busy schedule that is packed with athletic activities, a social life, and homework. Often her afternoons and evenings are split between sports and friends, so she stays up late to catch up on homework. Most nights she gets between five to six hours of sleep. As a result, she wakes up each morning feeling tired.

Based on Angelique's busy lifestyle, which other consequences might she experience? Check all that apply.

-less appetite

-dozing off in class

-more likely to get sick

-being bullied

-getting distracted

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Answer:

B, C, E

Explanation:

Gary and Anita wish to protest their property tax assessment by petitioning the Value Adjustment Board (VAB). What is the time frame in which they must do this

Answers

The time frame in which they must protest their property tax assessment by petitioning the Value Adjustment Board (VAB) is within 25 days of the date the TRIM notice was mailed.

The official Notice of Proposed Property Taxes is represented by the abbreviation TRIM, which stands for TRUTH IN MILLAGE.

The Property Appraiser mails this notice to the owner of the record for each property in Saint Lucie County every year in the middle of August as required by Florida law.

Although not a bill, this notice is nonetheless quite significant. Based on the planned millage (tax) rates, your property value as of January 1 of that year, and any relevant exemptions for which you are eligible, it is an estimate of your property taxes.

Additionally, it includes the dates and hours of the public meetings the taxing authorities will hold to discuss draft budgets. The Value Adjustment Board's formal appeal deadline is also specified in the TRIM notice (VAB).

Hence, the time frame in which they must do this is within 25 days of the date the TRIM notice was mailed.

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The two economically viable methods for desalinating seawater are reverse osmosis and __________

Answers

The two economically viable methods for desalinating seawater are reverse osmosis and electrodialysis.

Reverse osmosis is a water purification process that uses partially permeable membranes to separate ions, unwanted molecules, and larger particles from drinking water.

Reverse osmosis is a water purification process that uses a semi-permeable membrane (synthetic liner) to filter large particles such as unwanted molecules and contaminants, as well as sediments such as chlorine, salt, and dirt, from drinking water.

Consumption of RO water leads to dilution of electrolytes dissolved in water in the body. Improper redistribution of body water between compartments can impair the function of vital organs.

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Louisa is interested in investing in the stock of a corporation that pays regular dividends and generates consistent growth, so she chose a leading pharmaceutical company. Louisa is interested in purchasing __________ stocks.

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Louisa is interested in investing in the stock of a corporation that pays regular dividends and generates consistent growth, so she chose a leading pharmaceutical company. Louisa is interested in purchasing Bluechip stocks. This is further explained below.

What is Bluechip stocks.?

Generally, A large, well-known corporation is referred to as a "blue chip stock."

In conclusion, Louisa wants to invest in a firm that provides regular dividends and grows at a steady pace, so she picked a pharmaceutical company as her investment vehicle. Louisa is considering investing in blue-chip companies.

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According to the​ text, firms encounter rising costs when they attempt to produce more in the same time period. As a​ consequence, they must be offered a higher price to be willing to incur these higher costs. The resulting relationship between price and quantity supplied is:.

Answers

The resulting relationship between price and quantity supplied is called-

Law of Supply and this is a direct ( or positive ) relationship.

The law of supply states that there is a positive relationship between the

price and the quantity supplied.

What is meaning of law of supply?Law of supply states that other factors remaining constant, price and quantity supplied of a good are directly related to each other. In other words, when the price paid by buyers for a good rises, then suppliers increase the supply of that good in the market.

The law of supply summarizes the effect price changes have on a producer's behavior. For example, a business will make more of a good (such as TVs or cars) if the price of that product increases. So, if the price of TVs increases, TV producers are incentivized to produce more of them.

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