Answer:
The total loss in welfare to the economy will be -$32.
Explanation:
By intersecting the supply function QS to the demand function QD, we will find the equilibrium price:
QD = QS
16P - 8 = 64 - 16P
16P + 16P = 64 +8 =
32P = 72
P = $2.00
Replacing the equilibrium price either in QS or QD, we foind the equilibrium quantity:
QS = 64 - 16*2 = 64 -32
QS = 32
In this case the total revenues at the equilibrium price RE will be:
RE = 32 * $2 = $64
On the other hand if the government imposes a price floor at $3.00, then the new total revenues RN will be:
RN = 32 * $3 = $96
Therefore the total losses is find by subtracting the revenue at the goverment price floor RN to the revenue at the equilibrium price RE:
LT = RE - RN
LT = $64 - $96 = -$32
Answer:
6,000 units
Explanation:
The beginning inventory units are calculated below
We know
Number of units produced = Budgeted units sold + ending inventory units - beginning inventory units
35,000 units = 32,000 units + 9,000 units - beginning inventory units
35,000 units = 41,000 units - beginning inventory units
So, the beginning inventory units would be
= 41,000 units - 35,000 units
= 6,000 units
Answer: Option(a) is correct.
Explanation:
Corn chips and potato chips, both are substitute goods and thus, affect each others demand by a small changes in various factors.
In this question, a good weather increases the harvesting of corn which increases the supply of corn chips.
This shifts the supply curve rightwards as a result price falls and quantity increases. Hence, this lower price, increases the consumer surplus in the market of corn chips.
This change in the supply of corn chips will affect the demand for potato chips in the potato chips market. So, the demand curve for potato chips shifts leftwards. This shift in the demand curve, reduces the price level and quantity level. Hence, this lowers the producer surplus in the market for potato chips.
To-the-point! No one is enticed to read an email that has a long and boring subject. Briefly sum up the content of the email into something like “Partnership opportunity”
Answer:
120 gizmos.
Explanation:
We have been given that the weekly profit of a company is modeled by the function 
. The weekly profit, w, is dependent on the number of gizmos, g, sold. The break-even point is when 
.
To find the number of gizmos the company must sell each week in order to break even, we will substitute in profit function as:
Now, we will use quadratic formula to solve for g.
We will take the larger value for the number of gizmos.
Therefore, the company must sell 120 gizmos each week in order to break even.
