Answer:
$399,950
Explanation:
The computation of cash provided (used) in operating activities using the indirect method is shown below:-
Cash flow from operating activities
Net income reported $260,000
Add: depreciation expenses $100,700
Less: gain on sale of equipment -$6,500
Add: decrease in accounts receivables $41,500
Add: increase in accounts payable $18,750
Less: decrease in wages payable -$14,500
Cash flow from operating activities $399,950
We simply added the cash inflows and deduct the cash outflows to reach out the operating activities
Answer:
so maximum amount that consumers are willing to pay for the quantity demanded at this price = $168
Explanation:
given data
Q = 20 - P
P = $8
to find out
maximum amount that consumers are willing to pay for the quantity demanded at this price
solution
we get here demand at current market price that is
Q = 20 - P
Q = 20 - 8
Q = 12
and Total expenditure incurred will be at at current market price will be
Total expenditure incurred = Price × Quantity ..................1
Total expenditure incurred = $8 × 12
Total expenditure incurred = $96
and
we get price when Q = 0
Q = 20 - P
P = 20
so now consumer surplus will be here as
consumer surplus = 0.5 × ( Price when(Q = 0) - Current market price) × Quantity ............................2
put her value we get
consumer surplus = 0.5 × ( 20 - 8 ) × 12
consumer surplus = $72
and
now we get maximum amount that is
maximum amount = Current expenditure + Consumer surplus
maximum amount = $96 + $72
maximum amount = $168
so maximum amount that consumers are willing to pay for the quantity demanded at this price = $168
A is the answer to this question. Hope this helps!
Answer:
The equilibrium price level will double.
Explanation:
Suppose that the economy has a money supply of $4 billion and the income velocity of money is 8, the price level will be 4 and the real GDP is $8 billion. The formula we are using is:
- Money supply x velocity = price level x real GDP
If the money supply remains the same ($4 billion), the income velocity of money is 16 (it doubles), and the real GDP is $8 billion, then the price level will be:
$4 x 16 = price level x $8
$64 = price level x $8
price level = $64 / $8 = 8
So the price level has doubled to 8.
