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Alex
3 years ago
15

Over the past decade, medical costs have increased more rapidly than other prices. In order to illustrate how rising medical cos

ts have affected consumer alternatives, let X represent the number of medical services, and let Y represent the number of other goods. Furthermore, let income (M) be measured in hundreds of dollars, the price of medical services and other goods in terms of dollars per minute, with M = 100, Px = 4, and Py = 5.
a. Graph the budget line, and determine the market rate of substitution.
b. Illustrate the budget set.
c. Show in your graph what happens to the budget constraint if Px increases to $10.
d. What is the meaning of the slope of the two budget constraints?
Business
1 answer:
bulgar [2K]3 years ago
5 0

Answer:

Budget Line is the graphical representation of goods combinations, which a consumer can buy - given prices & income (spending all income)

Equation : X.Px + Y.Py = M

{where X & Y are quantities of goods X & Y ; Px & Py are prices of goods X & Y}

a. Putting price of : X= medical services ; Y = other goods ; M = 100 :-

Budget Line : 4X + 5Y = 100

Budget Set represents good combinations, which a consumer can get - given prices & income (not necessarily spending all income)

Equation : X.Px + Y.Py ≤ M.  All the area below Budget Line is Budget Set.

b. Market rate of substitution is the slope of budget line which is equal to price ratio of the goods i.e Px/Py = 4/5 = 0.8

c. Increase in Px: reduces the intercept of the axis representing Good X consumption & rotates the curve inwards on that axis. As - less of that good can be consumed with same income, due to price rise.

d. Slope of Budget Constraint: is price ratio of the two goods (Px/Py), as it denotes the amount of a good needed to be sacrifised for gaining an additional unit of the other good.

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On November 1, 2018, New Morning Bakery signed a $195,000, 6%, six-month note payable with the amount borrowed plus accrued inte
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Answer:

total cash pay is $200850

Explanation:

given data

Bakery signed P = $195000

rate R = 6 %

time T = 6 month

to find out

cash amount will be needed to pay back with interest

solution

we find first interest for 6 month that is 6/12 year

so interest = P×R×T

interest = 195000×0.06×6/12

interest = $5850

so total amount pay = Principal  + Interest

total amount pay =195000  + 5850

total cash pay = $200850

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2 years ago
Super Grocery store allocates its service department expenses to its various operating (sales) departments. The following data i
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Answer:

6,000

Explanation:

The computation of the total administrative expense allocated to the Meats department is shown below:

= (Total administrative expenses ÷ total square feet) × meat square feet

= ($15,000 ÷ 3,000) × 1,200

= 6,000

We simply do the proportion based on the meats department by dividing the total square feet

All other information which is given in the question is not considered. Hence, ignored it

8 0
3 years ago
How much do voice actors get paid per episode?
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It really depends as to what they do and how long they do it for I would say it ranges person to person
4 0
3 years ago
lark Bell started a personal financial planning business when he accepted $36,000 cash as advance payment for managing the finan
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The Effects of the Advance Payment (Receipt) on Lark Bell's Year 1 Financial Statements are:

                    Balance Sheet                                                                                                                      

              Assets =  Liabilities                                  + Equity  

Cash +$36,000 = Unearned revenue +$15,000 + Service Revenue +$21,000

                                 Income Statement                              Cash Flow

                     Revenue - Expense = Income                         Statement

Service Revenue +$21,000                                 Cash inflow +$36,000 OA

In Year 1, the Assets (Cash) will increase by $36,000.  There is a corresponding increase in Liabilities (Unearned Revenue) of $15,000 and an increase in Equity (Service Revenue) of $21,000.

Thus, the amount of revenue that Bell would recognize on the Year 2 income statement from this transaction in Year 1 is $15,000.  This covers 5 months from January to May.

Learn more about the effects of advance payment and revenue at brainly.com/question/24300418

5 0
1 year ago
On July 10, 2020, Pronghorn Music sold CDs to retailers on account and recorded sales revenue of $635,000 (cost $508,000). Prong
mixas84 [53]

Answer:

(a)

Dr Accounts Receivable $635,000

Cr 7/10/2020 Sales Revenue $635,000

Dr Cost of Goods Sold $508,000

Cr Inventory $508,000

(b)

Dr Sales Returns & Allowances $82,700

Cr 10/11/2020.Accounts Receivable $82,700

Dr Returned Inventory $66,160

Cr Cost of Goods Sold $66,160

10/31/2020 No entries are needed as the return period has expired.

Explanation:

(a)

Dr Accounts Receivable $635,000

Cr 7/10/2020 Sales Revenue $635,000

Dr Cost of Goods Sold $508,000

Cr Inventory $508,000

(b)

Dr Sales Returns & Allowances $82,700

Cr 10/11/2020.Accounts Receivable $82,700

Dr Returned Inventory $66,160

Cr Cost of Goods Sold $66,160

($508,000 / $635,000) x $82,700= $66,160

10/31/2020 No entries are needed as the return period has expired.

8 0
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