Answer:
A negative shock to oil prices will mean that now production becomes cheaper. This will cause the aggregate supply curve to shift rightwards and cause prices to fall and the output level to increase. The fall in prices will be short term however as over time the prices will adjust upwards to the point A which is the original market price.
Answer:
Total equivalent unit 86,688
Explanation:
We will use the weighted average method of valuation.
<em>Under the weighted average method of valuation, to account for completed units, it is assumed that the entire degree of work required is done in the period under consideration. So there is no separation of the completed units into opening inventory and fully worked.
</em>
Equivalent units = Degree of completion (%) × Number of units
Item Tons Working Equivalent units
Completed unit 82,400 82,400× 100% 82,400
Closing inventory 7,416 7,416 × 60% <u> 7,416 </u>
Total equivalent unit 86,687.6
Answer:
The person is NOT spending her income for both goods in a manner that maximizes her satisfaction.
Explanation:
Based on the information given The person is NOT spending her income for both goods in a manner that maximizes her satisfaction which means that she would have to INCREASE baseball games consumption and DECREASE movies consumption reason been that we were told that an individual enjoys going to baseball game three times compare to seeing new movie which therefore means The price of the ticket for a baseball game which is the amount of $30 should be increase while the price of a ticket for a movie which is the amount of $15 should be decrease.
Answer:
Multiple-step income statement for the year ending December 31, year 1
Sales $275,200
Cost of Goods Sold <u>($185,000)</u>
Gross Profit $90,200
Operating Expenses:
Administrative Expense ($35,000)
Selling expenses <u>($55,000)</u>
General Expense <u>($45,000)</u>
Operating Income ($44,800)
Non-Operating Revenue <u>$105,000</u>
Operating Income before tax $60,200
Income taxes <u>($25,000)</u>
Operating Income after Tax <u>$35,200</u>
Explanation:
Multi-step Income statement segregate the Operating Income and Expenses from non operating Income and Expense. It shows the gross profit and net operating income separately.
Answer:
Simone, Yakov and Ana could possibly be right.
Explanation:
The price of fell but the quantity remained the same.
If an elastic demand shifts the demand curve will move to the left. This would cause both prices as well as quantity to decline. So Rajeev's statement is not correct.
This can be because of the inelastic supply curve. If the supply curve is an inelastic vertical line then a fall in demand will not affect quantity while the price will fall. So, Simone's statement can be right.
If there is a decline in the demand curve will shift to the left. Now, if there is an increase in the supply by the same amount the price will fall but quantity will remain the same. So, Yakov's statement is right.
If supply increased but the demand curve is perfectly inelastic, the rightward shift in the supply curve will cause the price to fall but quantity will remain the same. So, Ana's statement is right.
if the demand curve is unitary elastic, an increase in supply will cause the price to fall and quantity to increase. So, Charles' statement is not correct.