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3 years ago

Suppose demand and supply are given by Qd = 60 - P and Qs = 1.0P - 20.

Business

2 answers:

Rufina [12.5K]3 years ago

7 0

Answer:

-Quantity demanded , quality supplied 20

-Magnitude of the shortage if a price ceilimg of 30, is 20

-Full economic price equilibrium 40

Explanation:

We have to equate both of them to find,

1.0P-20=60-P

2P=80

P=40

Now put the value of p, p=40

Qd=60-40

Qd=20

Now put the value of p, p=40

Qs=1.0P-20

Qs=1×40-20

Qs=20

Given in question 30 is applied

Qd=60-30

Qd=30

30 applied,

Qs=1.0P-20

Qs=1×30-20

Qs=10

Shortage is hence, 20.

Zepler [3.9K]3 years ago

5 0

Answer:

The quantity demanded and supplied at equilibrium is is 20

When there is a price imposition of $30, the shortage is 20

Full economic price is $40(equilibrium price)

Explanation:

At equilibrium Qd=Qs

60-P=1.0P-20

60+20=2P

2P=80

P=$40

Qd=60-40

Qd=20

Qs=1.0P-20

Qs=1*40-20

Qs=20

When a price of $30 is imposed :

Qd=60-30

Qd=30

Qs=1.0P-20

Qs=1*30-20

Qs=10

Shortage is =30-10

=20

Read more about budgetary slack

<em>brainly.com/question/15327518</em>

6 0

2 years ago

Your friend brought up an investment opportunity that will generate cash flows of $5,000, $5,300, and $6,000 next three years, r

ahrayia [7]

Answer:

The most I could pay for the investment is $12,960.09

Explanation:

The maximum a rational investor could pay acquire an investment is the present value of all future cash flows receivable from the investment.

In the case, the present of all cash flows is calculated thus:

Years Cashflows [email protected] 12% PV

1 5000 0.892857143 4,464.29

2 5300 0.797193878 4,225.13

3 6000 0.711780248 4,270.68

Total of present values 12,960.09

The discounting factor is calculated using the formula :

1/(1+r)^n where r and n are rate and number of years respectively.

8 0

3 years ago

The IRS agent who audited the Form 1120 filed by Alano Inc. concluded that $300,000 of the salary that Alano paid to its CEO and

wlad13 [49]

Answer: Alano's taxable income increases by $300,000.

Explanation:

Constructive dividends are paid to a shareholder and classified in such a way that they are not to be seen as taxable dividends.

If during auditing however, the IRS determines that it was indeed a taxable dividend, it becomes a constructive dividend.

Constructive dividends are taxable by definition so Alano's taxable income increases by the amount of dividend of $300,000.

7 0

3 years ago

The Most recent financial statements for Moose Tours, Inc., appear below. Sales for 2016 are projected to grow by 20 percent. In

Aneli [31]

Answer:

$5,006.07

Explanation:

The external financing needed = Projected Increase in Assets - Increase in Liabilities - Increase in Retained Earnings

Projected Increase in Asset = Assets Value*Sales Growth Rate

Projected Increase in Assets = $364,720 * 20%

Projected Increase in Assets = $72,944

Increase in Liabilities = Liabilities * Sales Growth Rate

Increase in Liabilities = $69,600 * 20%

Increase in Liabilities = $13,920

<em>To calculate the Increase in Retained Earning, the below calculations are needed:</em>

a. Profit Margin Rate = Net Income / Sales * 100

Profit Margin Rate = 75,000 / 751,000 * 100

Profit Margin Rate = 9.99%

b. Dividend Payout Ratio = Dividend / Net Income * 100

Dividend Payout Ratio = 30,000 / 75,000 * 100

Dividend Payout Ratio = 0.4

Dividend Payout Ratio = 40%

Retention Rate = 1 - Dividend Payout Ratio

Retention Rate = 1 - 0.40

Retention Rate = 0.60

Retention Rate = 60%

c. Expected Sales = $751,000 * 1.20 = $901,200

So, the Increase in Retained Earning = Expected Sales * Profit Margin * Retention Rate = $901,200 *9.99% * 60% = $54,017.93

Therefore, External Fund Needed = $72,944 - $13,920 - $54,017.93 = $5,006.07

3 0

3 years ago