Answer:
C. Higher prices but lower total revenue from marijuana sales.
Explanation:
The above scenario totally explains inelastic demand. Inelastic demand is when the buyer’s demand does not change as much as the price changes. When price increases by 20% and demand decreases by only 1%, demand is said to be inelastic.
When the price increases, people will still purchase roughly the same amount of the good or service as they did prior to the increase because their needs stay the same. A similar situation exists when there is a decrease in price demand will not increase substantially because consumers only have a limited need for the product.
Answer: Debit Research and Development expense $477,000
Credit Cash $477,000
Explanation:
The journal entry simply refers to the recording of transactions that a company makes and it should be noted that the total amount that's gotten in the debit column must be equal to the total amount that us gotten in the credit column.
Based on the information given in the question, the journal entry for Sheffield Corporation will be:
Debit Research and Development expense $477,000
Credit Cash $477,000
