_________ is the allocation of resources according to supply and demand.

The market demand function for corn is Qd = 5 15 - 2P and the market supply function is Qs= 5P- 6, both quantities measured in b

GaryK [48]

Answer:

The Producer surplus = 19.6.

consumer surplus = 12.25.

Aggregate supply = 31.85.

Explanation:

Normally, the demand equilibrium function equals to supply equilibrium function will get us the price which is $3 that is Qd = Qs. Hence, if we equate both function together like;

15 - 2P = 5P - 6.

15 +6 = 5P + 2P.

21 = 7P.

P = $3.

Thus, Qd = 15 - 2P= 15 - 2(3) = 15 - 6 = 9 units.

Qs = 5P - 6 = 5(3) - 6 = 15 - 6 = 9.

Therefore, if the price is going to be Increased by $4, we will have that;

Qd = 15 - 2P= 15 - 2(4) = 15 - 8 = 7 units.

=> The Producer surplus = 1/2 × 14 (4 - 1.2) = 19.6.

=> consumer surplus = 1/2 × 7 (7.5 - 4) = 12.25.

Aggregate supply = Producer surplus + consumer surplus = 19.6 + 12.25 = 31.85.

8 0

2 years ago

Onslow Co. purchased a used machine for $178,000 cash on January 2. On January 3, Onslow paid $2,840 to wire electricity to the

arsen [322]

Answer:

2nd January

Dr Machinery $178,000

Cr Cash $178,000

( to record the purchase of used machine)

3rd January

Dr Machinery $4,000

Cr Cash $4,000

(to capitalized the cost of wire electricity and installation to put the purchased machine in a ready-to-use stage).

Explanation:

- According to the information, all the expenses relating to the purchase of used machine are in cash. Thus, Cash is credited at the total amount of $182,000, in which $178,000 is credited in 2nd January to record the purchased price and the other $4,000 (2,840 + 1,160) is credited in 3rd January.

- Under GAAP, the recorded costs of a purchased fixed asset should included all the costs incurred which are necessary to bring the fixed asset to a ready-to-use stage. As wire electricity cost & cost for securing the machine in its position are all necessary for the machine's operation, these costs should be capitalized.

6 0

3 years ago

Select the correct answer. Ashley is a finance executive. She has gathered all the data from different departments regarding the

mrs_skeptik [129]

Answer:

Ashley is a finance executive. She has gathered all the data from different departments regarding the finances expended as well as earned in the process of selling a product. She needs to prepare an income statement. How should she start preparing the income statement?

show the sales revenue first

Explanation:

The sales revenue shown reflects the income accrued during the cause of sales and this comes first during income statement preparation

7 0

3 years ago

Below are departmental income statements for a guitar manufacturer. The manufacturer is considering eliminating its electric gui

sergij07 [2.7K]

Answer and Explanation:

1. The preparation of the department contribution report is presented below:

WHOLESALE GUITARS

Income statement showing Departmental contribution to overhead

For year Ended December 31,2015

Particulars Acoustic Dept Electric Dept Combined

Sales $112,500 $105,500 $218,000

Less : Cost of Goods sold

-$55,675 -$66,750 -$122,425

Gross Profit $56,825 $38,750 $95,575

Direct Expenses

Depreciation Expenses - Equipment $10,150 $9,000 $19,150

Salaries Expenses $17,300 $13,500 $30,800

Supplies Expenses $2,030 $1,700 $3,730

Total Direct Expenses $29,480 $24,200 $53,680

Indirect Expenses

Advertising Expenses $14,325 ($8,075 + $6,250)

Rent Expenses $12,055 ($6,105 + $5,950)

Utilities Expenses $5,595 ($3,045 + $2,550)

Total indirect Expenses $31,975

Net Income $27,345 $14,550 $9,920

2. As we can see that there is a loss so electric should not be eliminated

7 0

2 years ago

What will you be least likely to be responsible of as part of the accounting team of your organization? A. reconciling accounts

riadik2000 [5.3K]

Accounting is <em>a field that is concerned with the processing, measuring, and communicating of financial information of a company.</em> If you worked in an accounting department, you would most definitely have to reconcile accounts, prepare financial statements, monitor accounting activities, and prepare an investment schedule for the organization.

You will not, however, be expected to (D) develop marketing and advertising strategies. This type of task is usually assigned to the marketing department of a company.

5 0

3 years ago