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2 years ago

The price of apples falls. what happens in the market for apple pies?

1 answer:

7 0

It depends.
If it is a natural supply demand situation, then the makers of apple pies should lower their prices.

Or

They should make fewer pies because all the apple pie makers are going to choose making apple pies because of reduced costs.

In the market place, you can strive to make a profit, but you should never be greedy.

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For each scenario, decide whether it creates a producer or a consumer surplus. Then, calculate the ensuing surplus.

Gnom [1K]

Answer:

Alice's consumer surplus = $5

Jeff's consumer surplus = $16

Nicole's producer surplus = $1

Explanation:

Consumer surplus is the difference between the willingness to pay of a consumer and the price of a good.

Consumer surplus = willingness to pay - price of the good

Producer surplus is the difference between the price of a good and the least price the producer is willing to accept

Producer surplus = price of the good - least price the producer is willing to accept

Alice's consumer surplus = $30 - ($35 - $10) = $5

Jeff's consumer surplus = $20 - [$16 - (0.75 x $16)] = $16

Nicole's producer surplus = $501 - $500 = $1

5 0

3 years ago

Which of the following is true about investors who buy preferred stock?

raketka [301]

I think the correct answer is A. Investors who buy preferred stock receive dividends after the common stock shareholders. Preferred stock is a stock type that gives right to the owner a fixed share of the company's profit or fixed dividend.

7 0

2 years ago

Read 2 more answers

A department store, pressured to meet year-end targets, liquidated a large amount of merchandise at low prices even though it wa

brilliants [131]

Answer:

Sales Growth pricing objective

Explanation:

Since prices are being reduced then the aim will not be profitability, neither was it mentioned that it was because of competitors but it was done in the bid to meet internalsales targets.

This is an example of which pricing objective of Sales Growth:

Sales Growth’s objective is to increase sales volume. It sets its price in such a way that more and more sales can be achieved. It is assumed that sales growth has direct positive impact on the profits. So, pricing decisions are taken in way that sales volume can be raised. Setting price, altering in price, and modifying pricing policies are targeted to improve sales.

4 0

2 years ago

Bullseye, Inc.'s 2008 income statement lists the following income and expenses: EBIT = $707,000, Interest expense = $58,000, and

ololo11 [35]

Answer:

$1.15 per share

Explanation:

The computation of the earning per share is shown below:

Earning per share = Net income ÷ common stock outstanding shares

where,

Net income is

= EBIT - interest expense - taxes

= $707,000 - $58,000 - $224,000

= $425,000

And, the common stock outstanding shares is 370,000

So, the earning per share

= $425,000 ÷ 370,000 shares

= $1.15 per share

8 0

3 years ago

Two ways in which entrepreneurship can help to combat unemployment and improve the economy of south africa

zmey [24]

One is through innovation. New innovation meant new jobs for the nation. One example is Bheki Kunene, a young entrepreneur of South Africa. At age 27, he founded Mind Trix Media providing jobs and a profit. Next is it improves economy by being able to partner with big companies in the other countries.

5 0

2 years ago