Answer:
a. 0.8
Explanation:
In economics the MPC is the marginal propensity to consume. This percentage is usually multiplied by the disposable income to figure out how much money people in an economy will spend.
Answer:
Cost of goods sold is $7,700
Gross Profit is $2,300
Explanation:
Cost of goods sold is Cost of goods available for sale less ending merchandise inventory. Ending merchandise understated by $300 means ending merchandise was accounted $300 less. So, $300 need to be added to ending merchandise. No ending merchandise is $2,300 (2,000 + 300)
Cost of goods sold will be 10,000 - 2,300 = $7,700
Gross profit is sales revenue less cost of goods sold which is computed as shown below:
Gross profit = 10,000 - 7,700
= $2,300
Answer:
B. $2,250
Explanation:
Given
Tax = $15
Equilibrium quantity = 300
Therefore,
Deadweight loss from tax = (300 × 15) ÷ 2
= 4500 ÷ 2
= $2,250
Answer:
Ending inventory= $119,000
Explanation:
Giving the following information:
Sales (net) $1,450,000
Estimated gross profit rate of 42%
Beginning merchandise inventory $100,000
Purchases (net) 860,000
Merchandise available for sale $960,000
Cost of goods sold= 1,450,000*0.58= 841,000
Ending inventory= 960,000 - 841,000= 119,000