Answer:
consumer surplus will decrease.
Explanation:
Consumer surplus is defined as the difference between the price customers are willing to pay for a product and what they actually pay.
On the demand and supply curve it is indicated by the shaded area between equillibrum and demand curve as illustrated in the attached diagram.
For example let's assume the price a customer was willing to pay for a product was $50 and market price was $30
Initial consumer surplus= 50- 30= $20
Assume bmarket price increase to $40
The new consumer surplus is= 50- 40
Present consumer surplus= $10
So a price increase causes a decrease in the consumer surplus.
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Middle School
Basic Rank
Answer:
The expected value of the car you will buy is $22,000
Explanation:
In the given question, the car values are symmetrically distributed which means that we have to compute the mean between the values that are mentioned in the question.
So, the mean is an average of the numbers, the computation is shown below:
= (Value 1 + value 2) ÷ (number of observations)
= ($20,000 + $24,000) ÷ 2
= $22,000
Answer: Japan
Explanation:
The economic prosperity enjoyed by Japan during the 1980s and 1990s strained the world trading system and created the demand for increased protectionist measures.
This was due to the fact that the trade that took place between the United States and Japan between these years brought about some deficits in trade for United States while bringing prosperity for Japan and this led to some trade restrictions.
Answer:
1. $225,000
2. $40
Explanation:
1. The computation of company's economic value added is shown below:-
= Earning before interest and tax × (1 - Tax rate) - (Total Capital × Cost of capital)
= $500,000 × (1 - 30%) - ($1,250,000 × 10%)
= $350,000 - $125,000
= $225,000
2. The computation of market price per share is shown below:-
= Earning per share × Price per earning ratio
= $2 × 20
= $40