Answer:
both existing customers who now get lower prices on the gowns they were already planning to purchase and new customers who enter the market because of the lower prices.
Explanation:
Consumer surplus is the difference between the willingness to pay of a consumer and the price of the good.
Consumer surplus = willingness to pay – price of the good
Let assume that the price before the sale and after the sale is $1000 and $800. The willingness to pay of customer A is $1500 and for customer b is $900
consumer surplus of customer A before sale = 1500 - 1000 = 500
consumer surplus of customer A after sale = 1500 - 800 = 700
consumer surplus of customer B before sale = 0
consumer surplus of customer B after sale = 900 - 800 = 100
consumer surplus of both customers increase
Answer:
Operating expenses
Explanation:
Before a business yields a profit as an output , there is a need for some input from the business owners. One of these input is operating expenses .
Operating expenses is supporting cost of keeping the business running in the course of normal production , different from the cost of production and is necessary as every form of other cost may not get a desired result without the operating cost.
Examples include rent , payroll ,transportation , security fees among others.
Answer:
Assets would increase by $ 2897
Explanation:
Total Assets = Liabilities + Owner's Equity
Decrease in Liabilities = $ 27,137
Increase in Owner's Equity = $ 30,034
Total Change =$ 30,034 - $ 27,137= $ 2897
As the assets must equal the liabilities and owner's equity so the total change in liabilities and owner's equity must equal the change in assets.
In the above question the liabilities and owner's equity in total increase by $ 2897 so the assets must increase by $ 2897.
