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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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Lindsay Corporation had net income for 2018 of $3,000,000. Additional information is as follows: Depreciation of plant assets $1
melamori03 [73]

Answer:

Net cash provided by operating activities for 2018 was $4,560,000

Explanation:

The net cash provided by operating activities can be computed by preparing the operating activities of the statement of cash flow as shown below:

Net income for the year                          $3,000,000

add depreciation                                      $1,200,000

add amortization                                       $240,000

deduct increase in accounts receivable ($420,000)

add increase in accounts payable           $540,000

net cash provided by operations             $4,560,000  

The cash provided by operating activities is $4,560,000  

The rationale for deducting increase in accounts receivable is that the increase deprived Lindsay corporation cash of $420,000.

4 0
3 years ago
John's band's Facebook page has 17,000 likes. If each of his fans has friends that number 15 percent of the likes that John has,
ch4aika [34]
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6 0
2 years ago
Read 2 more answers
Jing Company was started on January 1, Year 1 when it issued common stock for $28,000 cash. Also, on January 1, Year 1 the compa
denpristay [2]

Answer:

5,280 net income for the Year 3

Explanation:

This would be the situation:

17,400 revenue

11,000 expenses

gain/loss on sale of equipment

= net income year 3

To know the result of the sale of equipment we have to do

sales price - book value = gain/loss on sale of equipment

8900         -  book value   = gain/loss

We have to determinate the book value.

book value = adquisition cost - acumulated depreciation

The equipment cost 15,200 + 1,300 transportation cost = <u>16,500 Adquisition Cost</u>

acumulated depreciation = depreciation per year * 3 years

and depreciation per year is:

\ $ depreciation per year $= \frac{Adquisition Value - Salvage Value }{Useful Life}

Here we have all the values, so we stop digging and start solving.

  • <em>depreciation </em>= (16,500-5,700)/5 = 2,160
  • <em>acumulated depreciation</em> = 2,160 * 3 = 6,480
  • <em>book value</em> = 16,500 - 6,480 = 10,020
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3 years ago
Which two of these rules could be included in a company’s acceptable use standards?
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It would be, B and E.
7 0
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Answer:

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