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Lena [83]
3 years ago
15

Supply and demand for a product are both a linear function of price. Suppose that if a price of $8 is charged, 8 units will be d

emanded; that if a price of $5 is charged, 20 units will be demanded; that if a price of $3 is charged, 38 units will be supplied; and that if a price of $1 is charged, 26 units will be supplied. For what price will supply equal demand?
Business
1 answer:
Elenna [48]3 years ago
7 0

Answer:

At $2 supply and demand are in equilibrium for 32 quantity

Explanation:

We have to solve for the linear equation first, and then calcualte the equilibrium price and quantity

m = \frac{y_1- y_2}{x_1-x_2}

Demand

\left[\begin{array}{cc}x&y&5&20&8&8\end{array}\right]

m = \frac{20- 8}{5-8} = 12\div -3 = -4

Then we solve for h

20 = -4\times5 + h \\ 20+20 = h \\h = 40

Demand would be y = -4x +40

We repeat the process with supply

\left[\begin{array}{cc}x&y&1&26&3&38\end{array}\right]

m = \frac{38- 26}{3-1} = 12\div 2 = 6

38 = 6\times3 + h \\ 38 -18 = h \\h = 20

Supply is y = 6x + 20

Now we can solve for equilibrium price

\left \{ {{y = -4x +40} \atop {y = 6x + 20}} \right.

-4x + 40 = 6x + 20

20 = 10x

x = 20/ 10 = 2 price

And quantity

6 x 2 + 20 = 32

-4x2 + 40 =  32

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Explanation:

Net cash flow present value = immediate deposit + Annual lease payment present value

= 25000+(18000\times 2.991)-25000\times 0.402

Net cash flow present value = 78838-10050 = 68788

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3 years ago
41. You own 25% of Unique Vacations, Inc. You have decided to retire and want to sell your shares in this closely held, all equi
adelina 88 [10]

Answer:

e. $6.0 million

Explanation:

The computation of the total value of the firm is shown below:

The Value of the firm is

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= $6,000,000

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Therefore the correct option is e.

We simply applied the above formula so that the correct value could come

And, the same is to be considered  

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3 years ago
Which of the following are microeconomic problems? (You may select more than one answer.)(a) Work/leisure choice.(b) Marketing s
Ksivusya [100]

Answer:

(a) Work/leisure choice

(b) Marketing strategy

Explanation:

Microeconomic issues relate to those that are within the scope and power of individuals, households and firms which means that problems here will relate to decisions that these participants make in relation to resource allocation.

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9) Selected information regarding a company's most recent quarter follows (all data in thousands). 9) _______ Direct labor $540
disa [49]

Answer:

Direct material= $340

Explanation:

Giving the following information:

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Cost of goods manufactured $1620

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T<u>o calculate the direct material used in production, we need to use the following formula:</u>

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3 years ago
Equinox Products Inc. Income Statement For the Year Ended December 31, 20Y8
Umnica [9.8K]

Answer and Explanation:

The preparation of the income statement is presented below:

                                     Equinox Products Inc.

                                        Income Statement

                     For the Year Ended December 31, 20Y8

Sales                                                                                    $5,313,000

Less: Cost of goods sold                                                   -3,700,000

Gross profit                                                                       $1,613,000

Less:

Operating expenses:

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Sales salaries expense          $385,000

Sales commissions                 $185,000

Advertising expense               $150,000

Depreciation expense-

store buildings and equipment $100,000

Delivery expense $30,000

Store supplies expense $21,000

Miscellaneous selling expense $14,000

Total  -$885,000

Less:

Administrative expenses:

Office salaries expense $170,000

Office rent expense $50,000

Depreciation expense - office buildings and equipment $30,000

Office supplies expense $10,000

Miscellaneous administrative expense $7,500

Total $267,500

Total operating expenses                                                        $-1,152,500

Operating income                                                                       $460,500

Other revenue and expense:

Interest revenue $30,000

Less: Interest expense -$21,000

Income before income tax                                                           $469,500

Less: Income tax                                                                           -$140,500

Net income                                                                                      $329,000

We simply deduct the all expenses and add all revenues so that the net income could come

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3 years ago
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