When a product price increases, why does the substitution effect encourage a consumer to buy less of a product? a) It works because other products are now relatively more expensive than they were before.
b) It works because the product is now relatively more expensive than it was before.
c) It works because when the price of one good increases, the consumer’s income effectively increases.
d) It works because the real income of the consumer has been increased.

Based on the supply and demand theory, why do medical doctors earn higher wages than child-care workers?

The purpose of the transportation approach for location analysis is to minimize which of the following? a. total costsb. total fixed costsc. the number of shipmentsd. total shipping costse. total variable costs

Colorado rocky cookie company offers credit terms to its customers. at the end of 2018, accounts receivable totaled $715,000. the allowance method is used to account for uncollectible accounts. the allowance for uncollectible accounts had a credit balance of $50,000 at the beginning of 2018 and $30,000 in receivables were written off during the year as uncollectible. also, $3,000 in cash was received in december from a customer whose account previously had been written off. the company estimates bad debts by applying a percentage of 15% to accounts receivable at the end of the year. 1. prepare journal entries to record the write-off of receivables, the collection of $3,000 for previously written off receivables, and the year-end adjusting entry for bad debt expense.2. how would accounts receivable be shown in the 2018 year-end balance sheet?