Answer: B) If the equilibrium quantity of cheeseburgers increases, then the demand shift in the market for cheeseburgers must have been larger than the supply shift.
Explanation:
1. An increase in the price of cheeseburgers is due to the fact that several burger joints in the area have recently gone out of business. This will shift the supply curve for cheeseburgers to the left, driving up the price of cheeseburgers and reducing the quantity.
2. An increase in the price of Calzones at local pizza parlors lead to an increase in the demand for Cheese burgers as cheese burgers and calzones are substitutes to each other. So, when price of calzones rise, consumers shift demand to cheeseburgers. This will lead to a rightward shift in the demand for cheese burgers as a result the price and quantity of cheese burgers increase.
3. A decrease in supply due to burger joints going out of business shift the supply curve to the left. Increase in the price of calzones increase demand for burgers shifts the demand curve to the right. Both these will increase the price of cheeseburgers but the effect on quantity cannot be determine as depends on the magnitude of the shift in the two curves.
If demand shifts more than supply, equilibrium quantity increases. If supply shifts more than demand, equilibrium quantity decreases.
Thus, B is correct.
Answer:
The appropriate solution is "$130,000".
Explanation:
The given values are:
No. of common shares outstanding
= 50,000
Dividend per share
= $1.80
No. of preferred shares outstanding
= 8,000
Dividend per share
= $5
Now,
The total dividend on common shares will be:
= 
On substituting the values, we get
= 
= 
($)
The total dividend on preferred stock will be:
= 
On substituting the values, we get
= 
= 
($)
Hence,
The total dividend paid by company will be:
= 
= 
= 
($)
Thus the above is the correct answer.
Answer:
Marginal Propensity to Consume = 0.8
Explanation:
Marginal propensity to consume (MPC) exhibits consumer's spending behavior as to what percentage of extra dollar is spent from extra dollar of income.
MPC is calculated as Increase in consumption divided by increase in income.
MPC: Increase in consumption / increase in income: 4,000 / 5,000
MPC = 0.8
Answer:
Actual Quantity = 28,000
Actual Price = 4.90
Standard Quantity = 25,800
Standard Price = 4.85
1)a. Direct Material Price variance = (Standard price – Actual Price)*Actual Quantity
= (4.85 - 4.90) * 28,000
= $1,400 U
b. Direct Material Quantity variance = (Standard Quantity – Actual Quantity)*Standard price
= (51,600*0.5 - 28,000)*4.85
= $10,670 U
2) a. Direct Labor Rate Variance = (Standard Rate – Actual Rate)*Actual Hours
= (21.20 - 20.2) * 8,650
= $8,650 F
b. Direct Labor Efficiency variance = (Standard Hours – Actual Hours)*Standard rate
= (51,600*1/6 - 8,650) * 21.20
= $1,060 U
$67,500
cost of the wages that you could be earning + loans + lost interest
45000 + 22000 + 500 = 67,500
