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egoroff_w [7]
3 years ago
6

If the demand curve for a life-saving medicine is perfectly inelastic, then a reduction in supply will cause the equilibrium pri

ce to:

Business
1 answer:
never [62]3 years ago
8 0

Answer:

If the demand curve for a life-saving medicine is perfectly inelastic, then a reduction in supply will cause the equilibrium price to <u>rise and the equilibrium quantity to stay the same</u>.

Explanation:

Perfectly inelastic demand curve indicates the quantity demanded for the life-saving medicine remains the same or does not change in response to a change in price.

Since a part of the law of supply states that the lower the quantity supplied, the higher the price; a reduction in the supply of the life-saving medicine will increase its price.

The combining effect of the two above will lead to an increase in the equilibrium price while the equilibrium quantity will remain the same as it will not respond to the change in price.

The attached graph explains this more clearly. In the graph, the demand curve DD is used to represent the perfectly inelastic demand curve for the life-saving medicine. Therefore, the quantity remains at q no matter the changes, either increase or decrease, in price. Movement from the supply curve S1 to S2 indicates a reduction in supply of the life-saving medicine which causes an increase in the equilibrium price from Po to P1 while the equilibrium quantity stays at q.

This therefore shows that if the demand curve for a life-saving medicine is perfectly inelastic, then a reduction in supply will cause the equilibrium price to <u>rise and the equilibrium quantity to stay the same</u>.

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Direct Labor Variances Advanced Micro Devices develops high-performing computing products. Assume one of its processors, Ryzen 7
Butoxors [25]

Answer and Explanation:

The computation is shown below:

a. The labor rate variance is

= (standard rate - actual rate) × actual labor hours

= ($20 - $19.50) × 64,000

= $32,000 favorable

b. The labor efficiency variance is

= (standard hours - actual hours) × standard rate

= (62,500 - 64,000) × $20

= -$30,000 unfavorable

c. the total flexible budget variance is

= standard cost - actual cost

= ($1,250,000 - $1,248,000)

= $2,000 favorable

7 0
3 years ago
Naomi has a home loan amount of $120,000. Her monthly principal and interest payment is $679.00 for thirty years. How much inter
Viktor [21]

Answer:

$124,440

Explanation:

Given a monthly principal and interest payment of $679, over the 30 year period, Naomi would have paid back

$679 * 30 year * 12 months in a year

= $244,440

With a loan amount of @120,000, the interest portion of the total repayment is therefore = total repayment less the loan amount

= $244,440 - $120000

= $124,440.

8 0
3 years ago
The franchise agreement: must be approved by the Securities and Exchange Commission (SEC) guarantees that the franchisee will ma
Reika [66]

Answer:

The franchise agreement is the contract that details the terms of the franchise

Explanation:

A franchise agreement is a legally binding document that outlines a franchisor's terms and conditions for a franchisee. Every franchise is governed by these terms, which are generally outlined in a written agreement between both parties.

In actuality, most franchise agreements are for an initial term of 10 to 20 years, and most franchisees leave before that term is completed.

The franchise agreement will designate the territory in which you will operate and outline any exclusivity rights you may have as well as spell out the royalty fees, franchise fee, trademark and mode of operations.

4 0
3 years ago
White Laundry Company purchased $6,500 of supplies on June 2 and recorded the purchase as an asset. On June 30, an inventory of
Alexeev081 [22]

Answer:

4. debit supplies expense, $3,500; credit supplies, $3,500.

Explanation:

Assuming there is no opening inventory of supplies. So the purchases mad is the only inventory which is in stock during the Month of June. Stock has been used during the month and at the end of the month it remains only $3,000.

Using following Formula we will calculate the supplies Expense.

Ending Inventory of supplies = Opening Inventory of supplies + Purchases - supplies Expensed in the period

$3,000 = $0+ $6,500 - Supplies Expensed in the period

$3,000 = $6,500 - Supplies Expensed in the period

$6,500 - $3,000 = Supplies Expensed in the period

Supplies Expensed in the period = $3,500

So, the entry will be

Debit supplies expense   $3,500

Credit supplies                 $3,500

6 0
3 years ago
Old School Publishing Inc. began printing operations on January 1. Jobs 301 and 302 were completed during the month, and all cos
marusya05 [52]

Entries Rearranged

Job 301

Direct materials $10,000

Direct labor 8,000

Factory overhead 6,000

Total $24,000

Job 302

Direct materials $20,000

Direct labor 17,000

Factory overhead 12,750

Total $49,750

Job 303

Direct materials $24,000

Direct labor 18,000

Factory overhead —

Job 304

Direct materials $14,000

Direct labor 12,000

Factory overhead

Answer::

a.

Given

$8,000 of indirect materials ------ Factory Overhead

Work In Process = Summation of direct materials

Journal Entry

Work in Process ---$58,000

Factory Overhead --- $8,000

Materials --- $66,000

b.

Given

$12,400 of indirect labor ------ Factory Overhead

Work In Process = Summation of direct labours

Journal Entry

Work in Process ---$55,000

Factory Overhead --- $12,400

Materials --- $67,400

c.

Given

Predetermined overhead rate:

Job 301: $6,000/$8,000 = 75%

Job 302: $12,750/$17,000 = 75%

Direct Labour Cost = Summation of direct labours = $55,000

Direct labor cost * Predetermined factory overhead rate:

$55,000 × 75% = $$41,250

Journal Entry

Work in Process: $41,250

Factory Overhead: $41,250

d.

Finished Goods = Summation of finished jobs (job 301 and 302)

Finished Goods = $24,000 + $49,750

Finished Goods = $73,750

Journal Entry

Finished Goods: $73,750

Work in Process: $73,750

8 0
3 years ago
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