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sveta [45]
3 years ago
5

Consumer surplus is A. the difference between the highest price a consumer is willing to pay and the price the consumer actually

pays. B. the difference between the highest price a consumer is willing to pay and the lowest price a firm would be willing to accept. C. the highest price a consumer is willing to pay to consume a good or service. D. the difference between the highest price a consumer is willing to pay and marginal benefit. E. the difference between the lowest price a firm would be willing to accept and the price it actually receives. How does consumer surplus change as the equilibrium price of a good rises or​ falls? As the price of a good​ rises, consumer surplus ▼ remains unchanged decreases increases ​, and as the price of a good​ falls, consumer surplus ▼ increases decreases remains unchanged .
Business
1 answer:
ss7ja [257]3 years ago
3 0

Answer is A

Explanation: Consumer surplus actually happens when a customer is willing and ready to pay for a particular product than its current market price. It is a measure of the additional benefits a consumer gets after paying for a product even though they are willing to pay more.

For example: Let's assume you want to get a IPhone 8 plus and you value it at $800 dollars, which you are ready to pay, but realise it is sold at $700. When you buy it at $700, the customer surplus is $100, that is a difference between how much you were willing to pay and the price you eventually got it.

Consumer Surplus changes as the equilibrium price of a good rises or falls. If the price of a good rises, the consumer surplus decreases but when the price of the good falls, the consumer surplus increases.

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Price elasticity for a good depends on the share of a consumer's budget spent on a good. Other things being equal, which of the
kvasek [131]

Answer:

Monthly Cell Phone Bill

Explanation:

Other things being equal, the higher the price of a good relative to a consumer's income, the greater the price elasticity of demand. Hence, the price elasticity of demand for low-priced items, such as thumbtacks and fish food, tends to be lower than the price elasticity of demand for relatively expensive items, such as monthly cell phone bill, that represent a more significant fraction of a consumer's annual income.

Be sure to consider not just the price, however, but also the overall portion of a consumer's annual income spent on an item. For example, one latte costs only $3.00, but for daily coffee drinkers the annual expense could be around $1,000. The elasticity of demand for lattes is therefore likely to be higher than that for other low-priced items (such as thumbtacks) that may need to be purchased only a few times annually.

4 0
3 years ago
What kind of table lists the quantity of a good that a person will buy at different prices?
Monica [59]

Answer: Demand Schedule

Explanation: A schedule is a table that lists quantity and price of a good. Since, here it is given quantity of a good that a person will buy we are referring to a single individual. So, the table which lists quantity for a good demanded by a single individual at different prices is given by an <em>individual demand schedule</em>.

6 0
3 years ago
Read 2 more answers
The corporate charter of Imp Company authorized the issuance of 10 million, $1 par common shares. During 2021, its first year of
lesantik [10]

Answer:

Paid -in Excess capital as on December 31, 2021 $124 million

Explanation:

The computation of the amount reported as a additional paid-in capital  is shown below

For Jan 1, 8 million ×  $15              $120 million

For June 3, 2 million × $18              ($36 million)

For December 28, 2 million × $20  $40 million

Paid -in Excess capital as on December 31, 2021 $124 million

7 0
3 years ago
Top Shelf Company builds oak bookcases. Determine whether each of the following is a direct material (DM), direct labor (DL), ma
Veronika [31]

Answer:

(1) Depreciation on factory equipment. ____MOH

(2) Depreciation on delivery trucks. ____ Period Cost

(3) Wood used to build a bookcase. ____Direct Material

(4) Production supervisor’s salary. ____ MOH

(5) Glue and screws used in the bookcases. ____ MOH

(6) Wages of persons who assemble the bookcases. ____Direct Labor

(7) Cost to run an ad on local radio stations. ____Period Cost

(8) Rent for the factory. ____ MOH

(9) CEO’s salary. ____ Period Cost

(10) Wages of person who sands the wood after it is cut. Direct Labor

Period Cost are costs that are not directly involved in the manufacturing costs of a product but are incurred in a particular  period. These expenses include advertising and selling expenses.

Direct Materials are material used to make a product . For example wood is a direct material for making shelves.

Direct Labor are the wages paid to the people who work in the production of a product.

Manufacturing Overheads are charges associated with the manufacturing of a product.they are indirect costs of the production like rent of the building etc.

 

4 0
3 years ago
Sara’s Salsa Company produces its condiments in two types: Extra Fine for restaurant customers and Family Style for home use. Sa
Len [333]

Answer:

1.$4.29 per cases

2. Extra Fine $14.29

Family Style $13.29

3a. Extra Fine $4.71

Family Style $0.29

3b. What might the management conclude about the Family Style Salsa product line is that Family Style salsa are not yielding profit which may may inturn make make the company to stop the production of the product in a situation where either the cost are not reduced or where the price.

Explanation:

1. Computation for the overhead cost that is assigned to each case of Extra Fine Salsa and each case of Family Style Salsa using Plantwide overhead rate

Using this formula

Overhead cost=Total overhead cost/Total volume

Let plug in the formula

First step is to calculate the Total overhead cost

Total overhead cost = $130,800 + $349,000 +$206,000

Total overhead cost =$685,800

Second step is to calculate the Total volume

Total volume= 35,000 + 125,000 cases

Total volume=160,000 cases

Now let calculate the Overhead cost

Overhead cost=$685,800/160,000 cases

Overhead cost=$4.29 per cases (rounded)

Therefore since we are making use of plantwide rate which means that same overhead cost of the amount of $4.29 per cases will be assigned to each of the two case .

2. Calculation to determine the total cost per case for the two products

Extra Fine Family Style

Direct materials + Direct Labor $ 10.00 $ 9.00

Add Overhead $4.29 $4.29

Manufacturing cost per case $ 14.29 $ 13.39

Therefore the the total cost per case for the two products will be:

Extra Fine $14.29

Family Style $13.29

3-A Calculation to determine the gross profit per case for each product.

Extra Fine Family Style

Selling price per case $ 19.00 $ 13.00

Less Manufacturing cost per case $14.29 $13.29

Gross profit (loss) per case $ 4.71. $ (0.29 )

Therefore the gross profit per case for each product will be ;

Extra Fine $4.71

Family Style $0.29

3-b. Based on the above Calculation What might the management conclude about the Family Style Salsa product line is that Family Style salsa are not yielding profit which may may inturn make make the company to stop the production of the product in a situation where either the cost are not reduced or where the price.

3 0
3 years ago
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