Answer
The answer and procedures of the exercise are attached in image.
Explanation
Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.
When the government lowers income taxes, consumption is Stimulated, causing a <span>rightward shift of the AD curve.
By lowering income taxes, the government will ensure an increase in average disposable income (part of the income that could be used to buy things). This will stimulate consumption and rightward movement in the Curve.</span>
Suppose the price of barley increases by 16.53%. If breweries buy 3.28% less barley after the price increase, the total revenue for barley producers will increase because the price effect is greater than the quantity effect.
Explanation:
Every company must sooner or later come to the point that an rise in the price is right.
Inflation has two primary causes: demand tug and expense drive.
Both have a general raise in costs in an economy. However, they work otherwise. Conditions of market pull arise as customer demand raises costs.
Consumers are now increasing the demand on the good for some quantity, and suppliers would need to offer a better price in order to deliver the good.
Answer:
The resources are allocated by the combined actions of the firms and the households and the central planning authority like the government.
Explanation:
Market economy is the economy where the demand and the supply laws direct the production of the services and goods. The supply involve the labor, natural resources and capital. Demand comprise of purchases by the consumers and the government.
In the market economy, the resources are allocated by the decisions of the firms and the households who are interacting in markets. It is an economy where the most economic decisions are the consequence from the interaction of the sellers and the buyers in the market but the government also plays a very vital role while allocation of resources are done.
Answer:
d. $35,000
Explanation:
For computing the depreciation expense we need to first calculate the depreciation per unit which is shown below:
= (Original cost - residual value) ÷ (estimated production units)
= ($440,000 - $40,000) ÷ (8,000,000)
= ($400,000) ÷ (8,000,000)
= $0.05 per unit
Now the depreciation expense is
= Production units × depreciation per bolts
= 700,000 units × $0.05
= $35,000
We simply applied the above formulas
