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The difference between the minimum price at which a producer is willing and able to sell a unit of a good or service and the pri

kap26 [50]

Answer:

Seller Surplus

Explanation:

In business terms, there is a difference in the expected value what a seller expects to receive from the products it sells and from the amount it actually earns.

The cost of the product not only involves the monetary cost but it also involves the cost in terms of efforts involved to produce an article.

When a seller puts a product in the market, then he tries to have it a market value more than its cost. When such market value is realised then the difference in cost and market value is surplus for the supplier or producer.

But in cases where the consumer is efficient enough to bargain such product and only pays an amount which is less than the cost, then there arises seller deficit, which is represented as a negative seller surplus.

4 0

3 years ago

A worker wants to set aside some money for retirement, hoping to live off the interest income. If the interest rate is 10% and t

Shkiper50 [21]

Answer:

d) 500,000

Explanation:

The amount that the worker is expected to save before retirement is the present value of the expected annual withdrawal using the interest rate of 10% as the discount rate:

savings balance at retirement=yearly cash withdrawal/interest rate

yearly cash withdrawal=$50,000

interest rate=10%

savings balance at retirement=$50,000/10%

savings balance at retirement$500,000

5 0

2 years ago

Joe is currently in consumer equilibrium by consuming cheese and crackers, such that the last cracker consumed yielded 8 utils a

Ludmilka [50]

Joe should decrease his consumption of crackers and his marginal utility from crackers will increase and also increase his consumption of cheese and his marginal utility from cheese will decrease .

<h3>What happens to marginal utility when consumption decreases?</h3>

According to the Law of Diminishing Marginal Utility, the additional utility derived from increasing consumption declines with each additional increase in consumption level.

What happens to marginal utility when consumption increases?

According to the law of declining marginal utility, when consumption rises, the marginal utility gained from each extra unit decreases, all other things being equal.

Why does marginal utility decrease as more is consumed?

Consumers will only purchase more of a specific good if the price drops since they get less satisfaction from consuming more units of that good.
Thus, the law of diminishing marginal value contributes to the understanding of the law of demand.

Learn more about marginal utility brainly.com/question/15149015

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4 0

2 years ago

After graduating from college, you are hired by the Ford automobile company as an economic analyst. For your first project, you

Olenka [21]

Answer:

1. if the price of Chevrolet Camaro increases, the demand for Ford Mustangs increases. Conversely, if the price of Chevrolet Camaro falls, the demand for Ford Mustangs falls.

2.If the price of gasoline increases, the demand for Ford Mustangs would fall and if the price of gasoline falls, the demand for Ford Mustangs would increase.

3. if income increases, demand for Ford Mustangs increases and if demand falls, demand for Ford Mustangs falls

Explanation:

Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.

If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.

Income elasticity of demand measures the responsiveness of quantity demanded to changes in income.

If the absolute value of income elasticity of demand is greater than one, it means demand is elastic.

The income elasticity is given as 3 , it means that demand is elastic. So if income increases, demand for Ford Mustangs increases and if demand falls, demand for Ford Mustangs falls.

Cross price elasticity of demand measures the responsiveness of quantity demanded of good A to changes in price of good B.

If cross price elasticity of demand is positive, it means that the goods are substitutes goods.

Substitute goods are goods that can be used in place of another good.

If the cross price elasticitiy is negative, it means that the goods are complementary goods.

Complementary goods are goods that are consumed together

Because the cross price elasticity between Chevrolet Camaro and Ford Mustangs is positive, it means they are subsituite goods. So, if the price of Chevrolet Camaro increases, the demand for Ford Mustangs increases. Conversely, if the price of Chevrolet Camaro falls, the demand for Ford Mustangs falls.

Because the cross price elasticity of demand between gasoline and Ford Mustangs are negative, they are complementary goods.

If the price of gasoline increases, the demand for Ford Mustangs would fall and if the price of gasoline falls, the demand for Ford Mustangs would increase.

8 0

3 years ago

Wehrs Corporation has received a request for a special order of 8,600 units of product K19 for $45.50 each. The normal selling p

disa [49]

Answer:

Increase in the net income=$ 89,160

Explanation:

The amount of the financial advantage or disadvantage would be determined as follows:

Unit variable cost of order = 16.30 + 5.60+ 2.80+5.20 = 29.9

$

Sales from special order) ($45.50× 8,600) 391300

Variable cost of special order ($29.9× 8,600) <u> 257,140 </u>

Contribution from special order 134,160

Cost of special machine <u>(45,000) </u>

Increase in contribution 89,160

Increase in the net income=$ 89,160

Note the fixed manufacturing overhead is irrelevant, they are cost that would be incurred whether or not the order is accepted

3 0

3 years ago