Use the following information to determine the Prior Year and Current Year trend percents for net sales using the Prior Year as the base year. ($ thousands) Current Year Prior Year
Net sales $801,810 $453,000
Cost of goods sold 392,887 134,088
Trend Percent for Net Sales:
Choose Numerator: Choose Denominator:
Base year cost of goods Base year net sales Trend percent
Current Year: 392,887 $B01,810 x = 49.0 %
Prior Year: 134,088 $453,000 = 29.6 %
Determine the 2014 and 2015 trend percents for net sales using 2014 as the base year.

Aprice ceiling is “binding” if the price ceiling is set below the equilibrium price. suppose that the equilibrium price is $5. if a price ceiling is set at $6, this will not affect the market in any way since $5 remains a legally allowable price (since $5 < $6). a price ceiling of $6 is called a “non-binding” price ceiling. on the other hand, if the price ceiling is set at $4, the price ceiling is “binding” because the natural equilibrium price is $5 but that is no longer allowed. what happens when there is a binding price ceiling? at a price below the equilibrium price, quantity demanded exceeds quantity supplied. there is a shortage. normally, price increases eliminate shortages by increasing quantity supplied and decreasing quantity demanded. in this case, however, price increases are not allowed past the price ceiling. we therefore predict that the observed market price will be right at the price ceiling and there will be a permanent shortage. the observed quantity bought and sold will be dictated by the quantity supplied at the price ceiling. although consumers would like to buy more, there are no more units for sale