Answer:
A surplus of avocados will result from the price ceiling.
Explanation:
A price ceiling is when the government or an agency of the government sets the maximum price for a good or service.
A price ceiling is binding when it is set below equilibrium price.
The price ceiling ($4.50) is less than the equilibrium price ($4) of avocados. As a result, surplus would increase. The supply of avocados would exceed the demand because price ceiling is above equilibrium price
<u>Solution and Explanation:</u>
The following formula is used in order to calculate the days sales outstanding:
Days sales out standing = ( Accounts receivable divided by Sales ) multiply with 365
= $1.5 million divided by $12 million multiply with 365
After calculating we get, 45.625 days
<u>In order to calculate the capital released, the following formula is used:
</u>
= 513699
Therefore, the capital released is $513699
Answer:
The interest revenue on note receivable that will be recognized at maturity is $1700.
Explanation:
The note is a three months note. So, the interest that will be charged on the note for the period the note was outstanding, i.e. three months from June to August. The rate that is given is an annual rate. Thus, the interest on note for three months period will be,
Interest revenue on note = 68000 * 0.1 * 3/12
Interest revenue on note = $1700
Answer:
D. Tim consumes more hamburgers and fewer hot dogs.
Explanation:
For his utility to remain constant, Tim will neither consume more goods in total, nor spend more money than before.
Therefore, because the price of hot dogs has risen, while the price of hamburger has remained the same, he will now buy more hamburgers and less hot dogs, because eating more hamburgers and less hot dogs will not decrease his satisfaction, it will remain the same. We can also conclude from that both fast food products are perfect substitutes for Tim.
Answer:
Aggregate demand (AD) refers to the total demand for goods and services in an economy in an economy at a given price level.
Components of Aggregate Demand (AD); Consumption (C), Investment (I), Government Spending (G) and Net Exports (X-M).
During the recession, the government can affect aggregate demand by increasing their fiscal expenditures and reduce taxation which is known as Fiscal policy.
Expansionary fiscal policy affects aggregate demand through an increase in government spending and a reduction in taxation. Those factors influence employment and increase household income, which then impacts consumer spending and investment
Fiscal policy determines government spending and tax rates. Expansionary fiscal policy, usually enacted in response to recessions or employment shocks, increases government spending in areas such as infrastructure, education, and unemployment benefits.
Explanation:
