Answer:
A change in quantity demanded is caused by a change in price only. That is, when price rises quantity demanded falls vise versa
A change in demand occurs when there is a shift in the demand caused by a change in other determinates of demand other than price such as change in income, change in taste and fashion, demographic changes etc.
Explanation:
Real word example of change in demand :
Changing Tastes or Preferences
From 1990 to 2020, the per-person consumption of chicken by Americans rose from 48 pounds per year to 85 pounds per year, and consumption of beef fell from 77 pounds per year to 54 pounds per year, according to the U.S. Department of Agriculture (USDA). Changes like these are largely due to movements in taste, which change the quantity of a good demanded at every price: that is, they shift the demand curve for that good, rightward for chicken and leftward for beef.
Simply put it this way> Change in quantity demanded : Price change, quantity demanded change
Change in Demand: Price doesn't change but quantity demanded changes as a result of change in other determinates of demand examples the change in preference
Answer:
Effect on income= $4,500 increase
Explanation:
Giving the following information:
Special offer: 9,000 units of product S51 for $20.50 a unit.
Direct materials $ 3.10
Direct labor 1.50
Variable overhead 6.40
The customer would like modifications made to product S51 that would increase the variable costs by $5.00 per unit and that would require an investment of $36,000 in special molds that would have no salvage value.
<u>Because it is a special offer, we will not have into account the fixed costs.</u>
Unitary variable cost= 3.1 + 1.5 + 6.4 + 5= $16
Investment= 36,000
Effect on income= 9,000* (20.5 - 16) - 36,000
Effect on income= 40,500 - 36,000
Effect on income= $4,500 increase
Answer:
The estimated fixed cost element of power costs is $10,000
Explanation:
For computing the fixed cost first we have to calculate the variable cost per unit which is shown below:
= (High power cost - low power cost) ÷ (High machine hours - low machine hours)
= ($22,000 - $15,000) ÷ (12,000 - 5,000)
= $7,000 ÷ 7,000
= $1
Now the fixed cost would be
= (High power cost) - (high machine hours × variable cost per unit)
= $22,000 - 12,000 × $1
= $22,000 - $12,000
= $10,000
Answer:
$230
Explanation:
Data given in the question
Marginal cost of the first hour = $50
Marginal cost of the second hour = $75
Marginal cost of the third hour = $105
So by considering the above information, the total cost is
= Marginal cost of the first hour + Marginal cost of the second hour + Marginal cost of the third hour
= $50 + $75 + $105
= $230
We simply added the marginal cost of all three hours in order to determine the total cost
Answer:
CPI in 2020 =142.7
CPI in 2019 = 100
Inflation rate = 42.7%
Explanation:
Inflation is the increase in the general price level. Inflation erodes the value of money.
Consumer Price Index(CPI ): This is the weighted average price of a basket of goods and services consumed by a typical consumer. It is used to measure the rate of inflation.
The increase in the CPI is taken to be the rate of inflation. For example, the CPI rose to 1.09 from 1.00, this implies an inflation rate of 9% within the time period in focus.
The CPI =
The price of a basket of goods in a current year ÷ Divided by the price of a basket of goods in a base year
The consumer price
Value of basket of goods in 2019 = (1000× $2) + (100× $50) + ( 500× $0.10)= 7050
Value of basket of goods in 2020= (1000× $2.50) + (100× $75) + ( 500× $$0.12)=10,060
CPI in 2020 = 10,060/7050× 100 =142.7
CPI in 2019 = 100
CPI in 2020 =142.7
CPI in 2019 = 100
The inflation rate =(142.7/100-1 ) × 100 = 42.7%
Note , we assume the CPI for 2019 is 100, since we were not provided with data to compute the price of a basket of good in 2018
CPI in 2020 =142.7
CPI in 2019 = 100
Inflation rate = 42.7%
