Answer:
<h2>In this case,the answer would be option d. or an increase in taxes and at a given price level consumers feel less wealthy.</h2>
Explanation:
- Aggregate Consumption Expenditure is an important component or determinant of the aggregate demand(AD) which positively or directly affects the AD,meaning that a general increase in the aggregate consumption expenditure will increase the AD in the economy and vise versa.
- Now,an increase in income tax is evidently a bad news for the consumers or buyers in the economy as the disposable household income would decrease as a result and the consumers or buyers would have less money or income at their disposable to spend on various goods and services in the economy.
- Therefore,an increase in tax in this case would lead a fall in the disposable income of the consumers/buyers which will further lead to a decrease in the overall consumption expenditure in the economy.
- Hence,everything else held constant,as aggregate consumption expenditure decreases in the economy,the AD will also decrease consequently and the AD curve shift downward or leftward in the graphical illustration of the goods market.
Answer:
See below
Explanation:
With regards to the above, the contribution margin is computed as;
Contribution margin per unit = Selling price per unit - Variable cost per unit
Selling price per unit = $20
Variable cost per unit = $15
Then,
Contribution margin per unit = $20 - $15
Contribution margin per unit = $5
Answer:
$30,000
Explanation:
Muffins Coffee Cakes
Contribution Per Unit (A) $4 $5
Oven Hours Required (B) 0.2 0.3
Contribution Per Hour $20 $16.67
Rank 1 2
Total Hours Available 1,500
Hours Required for 1 Unit of Muffin <u> 0.2 </u>
Total Muffins Production with 1500 Hours (1,500/.2) 7,500
Contribution Per Unit <u> $4 </u>
Total Contribution (7,500*$4) <u>$30,000</u>
Answer:
59
Explanation:
Let x = length of the rows
we can derive two equations from this question
1. 7x + 3
2. 5x + 19
Since the number of chairs are equal in the two equations :
7x + 3 = 5x + 19
solve for x
2x = 16
x = 8
Substitute for x in either equations
7(8) + 3 = 59
5(8) + 19 = 59
