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Daniel [21]
2 years ago
13

Suppose the demand function (D) for golf clubs is: Q = 240-1.00P, where P is the price paid by consumers in dollars per club and

Q is the quantity demanded in thousands.
Suppose the supply curve (S) for golf clubs is estimated to be: Q = 1.00P.
Calculate the equilibrium price for golf clubs and the equilibrium quantity sold.
The equilibrium price is $____ per club, and the equilibrium quantity is ____ thousand clubs.
Suppose instead that golf club producers agree to charge a price of ​$ per club. This would result in a surplus of___thousand clubs
Business
1 answer:
bogdanovich [222]2 years ago
4 0

Solution :

According to the theory of demand and supply, the equilibrium price and the quantity is established where both the demand and supply curves intersect.

From the graph, we can see that the point of equilibrium is at the intersection of D and S.

At this point, mathematically, D = S. In order to determine the price and quantity which exists at this point, we need to equate the demand as well as supply functions to calculate the equilibrium values.

∵ D is equal to S, we have

$240-1.00P=1.00P$

240=2P

120=P

Now substituting this value of the equilibrium price in to any of the functions, we get the equilibrium quantity at this price.

$Q=240-1.00P$

$Q=240-1.00(120)$

$Q=240-120$

$Q=120$

This is the equilibrium quantity. At this point, equilibrium price as well as the quantity is the same. Let the price of the golf club increases from $120 to $140. So substituting the value to the function above to determine the new quantity.

$Q = 240-1.00(140)$

   = 100

Therefore, when the demanded quantity decreases from 120 thousand clubs to 100 thousand clubs. This increases the price and decreases the quantity as the supply curve moved to the left. The demand remains constant.

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What is the first step in amending the Texas Constitution?
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Explanation:

According to Article 17 of the Texas Constitution which is otherwise known as "Mode of Amending the Constitution of This State"

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You manufacture covers for barbeque grills at a cost of $5 each and make a profit of $2 per cover.
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3 years ago
Pearl Company began operations on January 2, 2016. It employs 12 individuals who work 8-hour days and are paid hourly. Each empl
stiv31 [10]

Answer and Explanation:

Pearl Company Journal entries

Account Titles and Explanation Debit Credit

2016

Dr Salaries and wages expense

(12 x 8 x 13 x $13) 16,224

Cr Salaries and wages payable 16,224

Dr Salaries and wages expense

(12x 8 x 8x $13) 9,984

Cr Salaries and wages payable 9,984

Dr Salaries and wages payable

(12x 8 x 5x $13)6,240

Cr Cash 6,240

2017

Dr Salaries and wages expense

(12 x 8 x 13 x $15) 18,720

Cr Salaries and wages payable 18,720

Dr Salaries and wages expense

(12x 8 x 8x $15) 11,520

Cr Salaries and wages payable 11,520

Dr Salaries and wages expense 2,304

Dr Salaries and wages payable

(12 x 8 x 12 x $13) 14,976

Cr Cash

(12 x 8 x 12 x $15) 17,280

Dr Salaries and wages expense 576

Dr Salaries and wages payable

(12 x 8 x 3x $13)+(12 x 8 x 5x $15) 10,944

Cr Cash (12 x 8 x 8 x $15) 11,520

8 0
3 years ago
Mills Corporation acquired as an investment $260 million of 6% bonds, dated July 1, on July 1, 2021. Company management is holdi
aleksandrvk [35]

Answer:

1.

Dr Investment in Bonds 260

Dr Premium on Investment in Bonds 40

Cr Cash $300

2.

Dr Cash$7.8

Cr Premium on Investment in Bonds $1.8

Cr Interest Revenue $6

3.

Dr Investment in bonds $260

Dr Premium on Investment in Bonds $40

Dr Premium on investment in Bonds -$1.8

Cr Carrying Value $298.2

4.

Dr Cash $314

Dr Premium on Investment in Bonds $40

Dr Premium on investment in Bonds amortized -$1.8

Dr Investment in bonds $260

Cr Gain due to investment sale $15.8

( $260+$40-1.8)-314

Explanation:

Mills Corporation Journal Entry ( $ million)

1.

Dr Investment in Bonds 260

Dr Premium on Investment in Bonds 40

(300 -260)

Cr Cash $300

2.

Dr Cash

($260 million X 6% / 2) $7.8

Cr Premium on Investment in Bonds $1.8

Cr Interest Revenue

($300 million X 4% / 2) $6

3.

Dr Investment in bonds $260

Dr Premium on Investment in Bonds $40

Dr Premium on investment in Bonds -$1.8

Cr Carrying Value $298.2

($260+$40-$1.8

4.

Dr Cash $314

Dr Premium on Investment in Bonds $40

Dr Premium on investment in Bonds amortized -$1.8

Dr Investment in bonds $260

Cr Gain due to investment sale $15.8

( $260+$40-1.8)-314

8 0
3 years ago
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