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Katyanochek1 [597]
3 years ago
7

When students in a large class were surveyed about how much they would be willing to pay for a coffee mug with their university’

s logo on it, their medium willingness to pay was $5. At random, half of the students in this class were then given such a coffee mug, and each of the remaining students were given $5 in cash. Students who got mugs were then offered an opportunity to sell them to students who had not gotten one. According to standard economic models, how many mugs would be expected to change hands? How, if at all, would a behavioral economist’s predication differ?
Business
1 answer:
Misha Larkins [42]3 years ago
3 0

Answer:

Explanation:

1). How about we explain the standard financial model previously dependent on normal desire.

Since the medium ability to pay is $5, we can accept a large portion of the individuals have more readiness to pay than $5 and a large portion of the individuals have less. (Since it's a huge class, we can expect this)

In this way, half of them who got the mug will sell, as per standard hypothesis.

2). Presently conduct business analyst will oppose this idea. Individuals who got the mug, get an enthusiastic and nostalgic connection with it, in this manner they might not want to sell it since they get utility in the wake of having something, so by social hypothesis, not exactly 50% of students who got the mug will sell.

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During 2019, half of the treasury stock was resold for $180,000; net income was $510,000; cash dividends declared were $1,320,00
Sliva [168]

Answer:

$5,790,000 using opening balance assumption which was not provided in the question

Explanation:        

Shareholders Equity 2019= Opening Shareholders Equity + Resold Treasury Stock + Net income - Cash Dividends Paid

Here

Resold Treasury Stock is $180,000

Net income $510,000

Cash Dividends Paid $1,320,000

Opening Shareholders Equity is missing so we assume the following remainder part as I didn't find the remainder part anywhere:

As of Dec. 31, 2018, Warner Corporation reported the following: Dividends payable- 20,000; treasury stock- 600,000; paid-in capital-share repurchase- 20,000; other paid-in capital accounts- 4,000,000; retained earnings- 3,000,000.

So

Opening Shareholder Equity = Opening paid-in capital accounts + Retained earnings - Treasury Stock + Paid in Capital share repurchases

Opening Shareholder Equity = $4,000,000 + $3,000,000 - $600,000 + 20,000 = $6,420,000

By putting values, we have:

Shareholders Equity = $6,420,000 + $180,000 + $510,000 - $1,320,000

Shareholders Equity = $5790,000

4 0
3 years ago
On January 1, Year 5, customers owed Eagle $40,000. On December 31, Year 5, customers owed Eagle $30,000. Eagle uses the direct
irinina [24]

Answer:

$200,000

Explanation:

The computation of the net revenue is shown below:

= Cash sales gross - Returns and allowances + credit sales gross - discounts + beginning balance of account receivable - ending balance of account receivable  

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We simply first compute the net cash sales after considering the returns and allowances, and net credit sales after considering the discounts, and deduct the ending balance of account receivable

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Suppose the government decides that every family should own its own home. To bring this about, the government decides to subsidi
stira [4]

Answer:

d. the supply curve of new houses would shift rightward, since builders would be willing to produce and sell more houses at each given price.

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Explanation:

1. In the given scenario the government is willing to give home-construction companies $10,000 for every house that they build.

This will result in more willingness on the part of the construction companies to build more houses.

More houses built means more income coming in from the government.

Therefore the supply curve of home building will shift to the right.

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Increase in price results from a scarcity of oil. So to mitigate this excess oil is supplied to control price increase.

This action will shift the curve rightward.

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Suppose the demand for corn increases while at the same time the supply of corn also increases. As a result, the equilibrium pri
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Answer:

Rise, fall, or remain unchanged and equilibrium quantity of corn will increase.

Explanation:

In this case, the equilibrium price of corn might RISE, FALL, or NOT CHANGE while the equilibrium quantity of corn increases.

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