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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.

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A company is formulating its marketing expense budget for the last quarter of the year. Sales in units for the third quarter amo
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Answer:

a. $29,496

b. $21,996

Explanation:

a. The Computation of budgeted marketing expense for the fourth quarter is shown below:-

Sales units                                                            2,640

(2400 × 110%)

Variable marketing expenses per unit sold $0.15

Total Variable marketing expenses                 $396

Fixed Marketing expenses                                    $18,000

Salaries ($6,000 × 3)

Depreciation ($2,500 × 3)                                      $7,500

Insurance ($1,200 × 3)                                            $3,600

Total Fixed marketing expenses                            $29,100

Budgeted marketing expense

for the fourth quarter                                           $29,496

b. Estimated cash payment for marketing expenses for the fourth quarter = Budgeted marketing expense for the fourth quarter - Depreciation

= $29,496 - $$7500

= $21,996

7 0
3 years ago
Jillian is mapping her co-worker's decision-making process. she puts a few words in braces alongside a shaded rectangle. what do
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What would you expect to happen to the mix between internal financing (where companies use their own funds such as retained earn
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Answer:

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In a closed economy, saving and investment must be equal, but this is not the case in an open economy. In the following problem,
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Answer:

S>I

Explanation:

Y = C + I + G + (X - M) \\Y = C + I + G + NX

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S = Y - C - G

Y = C + S + G \\

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X = M \\i.e \\NX = 0 \\So, S = I

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X>M \\NX > 0 \\NCO > 0 \\Y > C + I + G

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S > I

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