1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Ksivusya [100]
3 years ago
10

For the following scenario, calculate the surplus and indicate if it is a producer surplus or a consumer surplus. Alice is willi

ng to spend $30 on a pair of jeans, and has a coupon for $10 off she found online. She selects and purchases a $35 pair of jeans, pre-discount.
Alice's
a) consumer
b) producer
Business
1 answer:
Sedaia [141]3 years ago
6 0

Answer:

a) consumer

$5

Explanation:

Consumer surplus is the difference between the willingness to pay of a consumer and the price of the good.

Willingness to pay is the highest amount a consumer would be willing to pay for a product. The willingness to pay in this question is $30.

The price of the goods is $35 but Alice would pay ($35 - $10) = $25

The consumer surplus is $30 - $25 = $5

Producer surplus is the difference between the price of a product and the lowest price a supplier would be willing to sell his product.

I hope my answer helps you.

You might be interested in
Econ please helppp :(((((
Lelechka [254]

Answer:

Pure competition

Explanation:

Pure competition refers to an ideal market with very many suppliers selling an identical product. Because the sellers are many, none of them can influence the price. Pure competition is also the perfect competition.  Other characteristics of perfect competition include.

  1. easy to enter and exit the market since there are no trade barriers
  2. All sellers sell a homogeneous product
  3. all sellers are price takers
  4. There are many buyers.
  5. Buyers have sufficient knowledge of prices and suppliers.
5 0
3 years ago
When looking at a firm's behavior, you know it is engaging in price discrimination when it:__________
Andreas93 [3]

Answer:

a. charges a different price to different customers that is not reflective of the firm's costs.

Explanation:

The price discrimination strategy occurs when an organization charges a different price to different customers that does not reflect the company's costs, that is, the company divides its potential customers into groups, usually based on customer perceptions and characteristics and demographic data to evaluate which group of customers is willing to pay more or less for a particular product or service.

This is a strategy that can be favorable for companies to charge a maximum price for their product knowing that it will be accepted, but it is effective in large companies that have a high position in the market.

3 0
2 years ago
Select the correct statement regarding the contribution margin ratio. Multiple Choice The contribution margin ratio equals contr
Art [367]

Answer:

The contribution margin ratio can be calculated using either total amounts or per unit amounts.

Explanation:

Contribution margin ratio = \frac{Contribution\:per\:unit}{Selling\:price\:per\:unit}

This can even be done by \frac{Total\:Contribution\:}{Total\:Sales}

This will calculate contribution as a percentage of Sales, with this margin ratio we get break even sales value, and not the units.

Whenever there is an increase in variable cost it decreases the contribution.

Therefore, correct statement is

The contribution margin ratio can be calculated using either total amounts or per unit amounts.

8 0
3 years ago
If the number of demanders for electric cars increases at the same time as the number of suppliers of electric cars increases, w
Dmitriy789 [7]

Answer:

(A) The equilibrium quantity will increase.

Explanation:

An increase in demand and supply of electric cars would shift the demand and supply curves to the right.

Equilibrium quantity would increase.

Price would not change.

I hope my answer helps you

7 0
3 years ago
The Moto Hotel opened for business on May 1, 2017. Here is its trial balance before adjustment on May 31.
julsineya [31]

Answer:

1. Insurance expires at the rate of $450 per month.

Dr Insurance expense 450

    Cr Prepaid insurance 450

2. A count of supplies shows $1,140 of unused supplies on May 31.

Dr Supplies expense 1,460

    Cr Supplies 1,460

3. (a) Annual depreciation is $2,880 on the building.

Dr Depreciation expense 240

    Cr Accumulated depreciation, building 240

(b) Annual depreciation is $2,280 on equipment.

Dr Depreciation expense 240

    Cr Accumulated depreciation, equipment 190

4. The mortgage interest rate is 6%. (The mortgage was taken out on May 1.)

Dr Interest expense 168

    Cr Interest payable 168

5. Unearned rent of $2,510 has been earned.

Dr unearned revenue 2,510

    Cr Rent revenue 2,510

6. Salaries of $880 are accrued and unpaid at May 31.

Dr Wages expense 880

    Cr Wages payable 880

6 0
3 years ago
Other questions:
  • Bill Phillips is developing a Monte Carlo simulation to value a complex and thinly traded security. Phillips wants to model one
    11·1 answer
  • Blanchard Company manufactures a single product that sells for $140 per unit and whose total variable costs are $112 per unit. T
    12·1 answer
  • When interspecific competition has an outcome called competitive exclusion, _________?
    9·1 answer
  • Because of the open-air configuration of upscale specialty stores, coupled with entertainment and restaurants, ________ are very
    6·1 answer
  • . If a T-bill promises to repay $10,000 in one year and the market interest rate is 6 percent, how much will the bill sell for i
    13·1 answer
  • By what percentage did​ mydeco's revenues grow each year from 2010 to​ 2013?b. by what percentage did net income grow each​ year
    13·1 answer
  • On January 1, Year 1, a contractor began work on a $3.2 million construction contract that is expected to be completed in 3 year
    11·1 answer
  • Kant Corporation retires its $500,000 face value bonds at 102 on January 1, following the payment of interest. The carrying valu
    9·1 answer
  • Kevin works in an airline office. He has a habit of visiting social networking sites on his office computer during work hours. W
    11·2 answers
  • By understanding its customers’ needs, which marketing management philosophy is vineyard vines utilizing?.
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!