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Nina [5.8K]
3 years ago
7

The current equilibrium price and quantity in the market for walnuts are $5 per pound with 10,000 pounds supplied. Supermarkets

are expecting to see sales rise to 15,000 pounds due to an unusually large crop of walnuts. If the price elasticity of demand is 1.8, what is the new price per pound of walnuts?
a. P = $5
b. P = $6
c. P = $4
d. P = $7
Business
1 answer:
mel-nik [20]3 years ago
6 0

Answer:

Option (a) is correct.

Explanation:

Given that,

Initial Quantity supplied = 10,000

New quantity supplied = 15,000

Initial price = $5

Price elasticity of demand = 1.8

Percentage change in quantity supplied:

= [(New quantity supplied - Initial Quantity supplied) ÷ Initial Quantity supplied] × 100

= [(15,000 - 10,000) ÷ 10,000] × 100

= (5,000 ÷ 10,000) × 100

= 50%

Let the new price be x,

Percentage change in price:

= [(New price - Initial price) ÷ Initial price] × 100

= [(x - $5) ÷ $5] × 100

= (x - 5) × 20

= 20x - 100

Therefore,

Price elasticity of demand = Percentage change in quantity supplied ÷ Percentage change in price

1.8 = 50 ÷ (20x - 100)

1.8 (20x - 100) = 50

36x - 180 = 50

36x = 230

x = 5

Hence, the new price per pound of walnuts is $5.

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The Payroll records of Oregon Mist contained the following information for the month of November: Salaries $ 350,000 FICA Taxes
uysha [10]

Answer: D. debit to Payroll Tax Expense of $26,950.

Explanation:

We should note that the payroll tax expense will consist of the federal unemployment tax, the state unemployment tax and the FICA taxes. This will then be:

= 3500 + 1750 + 21700

= 26950

Therefore, the journal entry to record the monthly Payroll Tax Expense would include debit to Payroll Tax Expense of $26,950.

8 0
2 years ago
Janet Foster bought a computer and printer at Computerland. The printer had a $900 list price with a $100 trade discount and 2/1
nikdorinn [45]

Answer:

Janet Foster

a. Janet could save $12.44 on the printer by borrowing $800 to take advantage of the cash discount.

b. On the computer, the difference in the final payment between choices 1 and 2 is $197.

It is advisable for Janet to choose the first option.

Explanation:

a) Data and Calculations:

Printer:

List price of printer = $900

Trade discount =          100

Purchase cost =        $800

Cash discount terms = 2/10, n/30

Cash discount = $16 ($800 * 2%)

Interest on loan to purchase printer = $3.56 ($800 * 8% * 20/360)

Savings if loan is borrowed = $12.44 ($16 - $3.56)

Computer:

List price = $4,060

Trade discount = 25% or $1,015 ($4,060 * 25%)

Purchase cost = $3,045

Payment options:

1) = $160 * 17 months = $2,720

Balance on 18th month    325

Total payment =           $3,045

2) = Payment with 8% interest for 18 months equal payment = $180.08

From an online financial calculator:

N (# of periods)  18

I/Y (Interest per year)  8

PV (Present Value)   $3,045

FV (Future Value)  0

P/Y (# of periods per year)  12

C/Y (# of times interest compound per year)  12

PMT made at the end of each period

Results

PMT = $180.08

Sum of all periodic payments $3,241.48

Total Interest $196.48

Difference in final payment:

Choice 1 , total payment =    $3,045

Choice 2, total payment =    $3,242

Difference in final payment = $197

6 0
2 years ago
A local finance company quotes an interest rate of 17 percent on one-year loans. So, if you borrow $34,000, the interest for the
Serga [27]

Answer:

Company quotes an interest rate 17 percent on one-year loans.

Explanation:

Borrow value=$34000

interest rate of company in one year=17 percent

Total interest in a year =$34000×\frac{17}{100}

total interest=$5780

Total payment in one year=$34000+$5780

Total payment=$39780

You will pay $39780/12 or $3315.00/month according to company statement.

6 0
2 years ago
In previous years, Cox Transport reacquired 4 million treasury shares at $22 per share and, later, 2 million treasury shares at
crimeas [40]

Answer:

$8 million

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Amount of increase in paid-in capital—share repurchase = Number of treasury shares × $4 = 2 million × $4 = $8 million

Therefore, Cox’s paid-in capital - share repurchase will increase by $8 million.

3 0
3 years ago
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Mars2501 [29]

Answer:

$5,570

Explanation:

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therefore,

The reconciled cash balance at April 30 on the bank reconciliation should be $5,570.

4 0
2 years ago
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