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Sauron [17]
3 years ago
14

Identify the equilibrium price and quantity of blueberries before the introduction of a price ceiling. Identify and quantify the

effect of imposing a price ceiling at $5 per gallon on: 1) the quantity of blueberries that get bought and sold, 2) any existing shortage or surplus of blueberries, 3) consumer surplus, 4) producer surplus, and 5) total surplus. Be careful to put your answers in the correct units.

Business
1 answer:
Setler79 [48]3 years ago
7 0

Answer: See attached file

Explanation:

a) At equilibrium, demand equals supply where the price is $6 and quantity traded is 80 units.

Consumer surplus before price ceiling is area of triangle of A6E whose area is (1/2) * (80 - 0) * (14 - 6) = 320

Producer surplus before price ceiling is area of triangle of 26E whose area is (1/2) * (80 - 0) * (6 - 2) = 160

Total surplus before price ceiling = consumer surplus + producer surplus = 320 + 160 = 480

b) At a price of $5 (price ceiling) where demand = 90 units while supply = 60 units causes shortage of 90 - 60 = 30 units in the market.

Consumer surplus after price ceiling is area of triangle A8G + area of rectangle 85DG whose sum is (1/2) * (14 - 8) * (60 - 0) + (60 - 0) * (8 - 5) = 180 + 180 = 360

Producer surplus after price ceiling is area of triangle 5DC whose sum is (1/2) * (60 - 0) * (5 - 2) = 90

Deadweight loss after price ceiling of triangle GDE whose sum is (1/2) * (80 - 60) * (8 - 5) = 30

Total surplus is consumer surplus + producer surplus after price ceiling = 360 + 90 = 450

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Allisa [31]

Answer:

12.75%

Explanation:

Given that

Net assets value = $24.19

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= (Net assets value + Dividend and capital gain distribution - Offer price) ÷ Offer price

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So, for computing the holding period return we simply applied the above formula.

5 0
2 years ago
You need some money today and the only friend you have that has any is your ‘miserly' friend. He agrees to loan you the money yo
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Answer:

B. The total interest = $4.35

Explanation:

The first question to answer, is  what is the present value of the annuity of the loan and then based on that the total interest can be calculated.

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The r represents the rate or 1.5%

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Calculating the value =

= 20 x [(1-1.015^-6)/0.015]*1.015

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Now that the loan amount is known, the Total Interest can be calculated as follows

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Selected current year company information follows:
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Answer:

b. 2.81 times

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Calculation to determine Total stockholders' equity, end-of-year 121,851

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Total equity 198,935 121,851

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Now let determine the Total asset turnover

Total asset turnover = $712,855/[($282,867 + $225,052)/2]

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6 0
2 years ago
Conversion cost is the sum of a.selling cost and administrative costs. b.product costs and period costs. c.direct labor cost and
defon

Answer:

The answer is  c.direct labor cost and overhead costs.

Explanation:

Conversion costs include direct labor and overhead expenses incurred in the process of converting raw materials into finished products

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The process through which a product or service takes root initially in simple applications at the bottom of a market and then mo
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