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3 years ago

If income increases by $100 and consumption increases by $75, the slope of the consumption function equals _____.

Business

1 answer:

Rainbow [258]3 years ago

8 0

Answer:

3/4

Explanation:

The marginal propensity to consume mpc, is the slope of the consumption function and it is what this question requires us to find

We have income increase to be = 100 dollars

Then consumption increase = 75 dollars

MPC = increase in consumption ,75/increase in income 100

= 75/100

= 3/4

Therefore the marginal propensity to consume also called the slope is 3/4

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George Jefferson established a trust fund that will provide $170,500 per year in scholarships. The trust fund earns an annual re

Dimas [21]

Answer:

$8,119,048

Explanation:

Given that,

Amount of scholarships = $170,500 per year

Trust fund earns an annual rate of return = 2.1 percent

Let x be the amount contribute to the fund and assuming that only income is distributed,

2.1% of x = Amount of scholarships

0.021x = $170,500

x = $170,500 ÷ 0.021

= $8,119,048

Therefore, the amount of money that is contributed by the George Jefferson to the trust is $8,119,048.

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3 years ago

In most large cities there are a large number of bakeries. These bakeries produce similar, but not identical, products. Some bak

Kaylis [27]

Answer:

The correct answer is option A.

Explanation:

A monopolistic market is a market structure that has a large number of buyers and sellers in the market. The sellers produce heterogeneous or differentiated products which are close substitutes. There are relatively easier entry and exit in the market as compared to a monopoly market.

There is a high degree of competition in the market and the producers use an advertisement to promote their products.

4 0

4 years ago

Brief Exercise 9-2 Paige Company estimates that unit sales will be 10,800 in quarter 1, 12,300 in quarter 2, 14,200 in quarter 3

iogann1982 [59]

Answer:

Quarter 1 2 3 4 Total

Quantity 10,800 12,300 14,200 18,800

Price ×$85 ×$85 ×$85 × $85

Total Sales($) 918,000 1,045,500 1207000 1,598,000 4,768,500.

Explanation:

The sales budget is statement showing the expected future quantity to behold and the corresponding expected revenue. The expected revenue is determined by multiplying the selling price by the quantity

Sales budget for Paige Company

Quarter 1 2 3 4 Total

Quantity 10,800 12,300 14,200 18,800

Price ×$85 ×$85 ×$85 × $85

Total Sales($) 918,000 1,045,500 1207000 1,598,000 4,768,500.

5 0

3 years ago

Journalize the following transactions:

Jet001 [13]

Answer:

The Journal entries are as follows:

(i) On January 3,

Salaries expenses A/c Dr. $110,000

To salaries payable $110,000

(To record the salaries expenses)

(ii) On January 3,

Merchandise inventory A/c Dr. $55,692

Raw material inventory A/c Dr. $37,128

To accounts payable A/c $92,820

(To record the merchandise and raw material)

Shipping cost A/c Dr. $550

To bank A/c $550

(To record the shipping cost)

(iii) On January 3,

Accounts receivables A/c Dr. $22,000

To sales $22,000

(To record the sales on account)

cost of goods sold A/c Dr. $15,180

To Merchandise inventory $15,180

(To record the cost of goods sold)

(iv) Cash A/c Dr. $16,850

To accounts receivables $16,850

(To record the cash received)

8 0

4 years ago

Quinn Inc. has a number of divisions. One division, Style, makes zippers that are used in the manufacture of boots. Another divi

attashe74 [19]

Answer:

Cost saving per zipper

= External price - Agreed transfer price

= $3.50 - $3.25

= $0.25

Total cost saving

= $0.95 x 90,000 zippers

= $85,500

Explanation:

In this case, we need to calculate the saving per zipper which is external price minus agreed transfer price. Then, we will multiply the saving per zipper by the quantity of zipper required by LeatherStuff, which is 90,000 zippers.

7 0

3 years ago