Transactions for buyer and seller shore co. sold merchandise to blue star co. on account, $112,000, terms fob shipping point, 2/10, n/30. the cost of the merchandise sold is $67,200. shore co. paid freight of $1,800. assume all discounts are taken. journalize shore co.'s entries for the (a) sale on account, (b) payment of freight, and the (c) collection of the amount due. (a) (b) (c) journalize blue star co.'s entries for the purchase of (a) merchandise on account and the (b) payment of the amount due. (a) (b)

answer; closing the loop;

the answer is "b.the increased supply will create a surplus. "

the essential thought behind price controls is straightforward - utilize the power of law to modify the equilibrium of a market. for instance, the legislature may choose that the steel business needs to survive, and in this way pass a law to set a value floor on steel. this implies all steel sold must offer at or over the floor value, which must be set over the equilibrium cost for it to have any impact. the switch could likewise happen - the administration can choose that steel is excessively costly and set a value roof underneath its equilibrium value, with the goal that all steel must be sold at or beneath that ceiling.