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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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In one year, Hitech Microdevices will pay a common stock dividend of $4.35. You predict that you will be able to sell your Hitec
Andre45 [30]

Answer:

Price to be paid now = $52.89

Explanation:

<em>The Dividend Valuation Model is a technique used to value the worth of an asset. According to this model, the worth of an asset is the sum of the present values of its future cash flows discounted at the required rate of return. </em>

T<em>he stock would be held for just a period, hence we would use the single period return model. This is given as follows:</em>

Price now  = D/(1+r) + P×(1+r)

Dividend , r - rate of return, P -year-end price of stock

Dividend = 4.35, r-16%, P- 57

Price = 4.35/(1.16)  + 57/(1.16)= $52.89

Price to be paid now = $52.89

7 0
2 years ago
A company acquired an office building on three acres of land for a lump-sum price of $2,450,000. The building was completely equ
galina1969 [7]

Answer:

$735,000

Explanation:

The fair values of the assets may be used as a basis for determining the amount to be recorded for each of the assets.

This will be in a proportional manner such that the higher the fair value, the higher the actual cost assigned and vice versa to the asset.

Hence the amount to be recorded for the building

= 840,000 / (840,000 + 840,000 + 1,120,000) * $2,450,000

= $735,000

7 0
3 years ago
Thirty years ago, the original owner of Greenacre, a lot contiguous to Blueacre, in fee simple, executed and delivered to his ne
sineoko [7]

Answer: Son's argument should fail

Explanation:

The son's defense will fail because the location of the easement is not governed by reasonableness as it had been established at its current location by the neighbor.

It can not now be changed arbitrarily by the son because the original owner had allowed it to be built. The easement's location is therefore established by actions between the original owner and the neighbor and so it is a binding location.  

7 0
3 years ago
Use the information in the adjusted trial balance presented below to calculate current assets for Taron Company: Account Title D
ryzh [129]

Answer:

$45,600

Explanation:

The total assets comprises of current assets, fixed assets and the intangible assets

The current assets includes cash, stock, account receivable, etc

Fixed assets include plant & machinery, land, equipment, furniture & fittings, etc.

And, the intangible assets include patents, copyrights, goodwill, etc.

The computation of the current asset is shown below:

= Cash + Accounts receivable + Prepaid insurance

= $23,000 + $16,000 + $6,600

= $45,600

5 0
3 years ago
Heart &amp; Home Properties is developing a subdivision that includes 600 home lots. The 450 lots in the Canyon section are belo
Sophie [7]

Answer:

Each Canyon lot will cost = $10,000, total costs associated to the 450 Canyon lots = $4,500,000

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When you allocate joint costs using the value basis method, the costs will be allocated to the different products using their sales value:

total costs = $4,000,000 + $3,500,000 = $7,500,000

total sales value = (450 lots x $55,000) + (150 lots x $110,000) = $24,750,000 + $16,500,000 = $41,250,000

total costs allocated per $1 of sales value = $7,500,000 / $41,250,000 = $0.181818

Each Canyon lot will cost = $0.18181818 x $55,000 = $10,000, total costs associated to the 450 Canyon lots = $4,500,000

Each Hilltop lot will cost = $0.18181818 x $110,000 = $20,000, total costs associated to the 150 Hilltop lots = $3,000,000

6 0
3 years ago
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