Answer:
The consumer surplus in the market for gasoline is $250 million
Explanation:
Consuemr Surplus
It is the difference between the consumer is willing to pay for the commodity and the actual market price.
The consumer surplus can be calculated as follow
Consumer Surplus = 0.50 x ( Maximum Price - Market Price ) x Quantity
Where
Maximum Price = $6.00
Market Price = $3.50
Quantity = 200 million gallons
Placing values in the formula
Consumer Surplus = 0.50 x ( $6.00 - $3.50 ) x 200
Consumer Surplus = $250 million
Note: The graph in the question was missing, it is attached for your reference.
Answer:
1. government shoud increase price by 50%. so it would be $3
2. larger effect 5 years from now
3. this is true due to their limited finance compared to adults
Explanation:
1. prices elasticity = % change in quantity demanded ÷ % change in price
price elasticity = 0.4
% change in dmd = 20%
% change in price = ?
we cross multiply
? = 0.20/0.4
= 0.5
= 50%
so if the government wants to reduce smoking by 20%, it has to increase the price of cigarettes by half of its price= $2 + $1 = $3
2. goods usually have more elastic demand as time goes on. So if cigarette price is permanently raised, it would have a bigger effect five years from now. This is based on the fact that the people may not feel short run effect of the increase as they would in the long run. But gradually given this increase, people may start to gradually reduce their smoking.
3. The effect of the change in price would be more felt on the teenagers. this is due to the fact that they have limited financial strength compared to adults. Also they are new to smoking compared to the adults and are more likely to be less involved in the habit.
The fact
that the company spends very little money on recruiting is an evidence or an indicator
that Patagonia enjoys high organizational commitment or high employee
commitment. It is because their employee benefits, to name a few these are: (1.)
flexible employee schedules (2.) internship program that both fosters Continuance
commitment.
If you received a second contract with for a person or another company, but your competitor does not know if you received the first, there is a high chance you also received the first contract. If they worked with you in the past and a good job was done on the task, chances are they trust you and want to work with you again on future contracts.
Answer: See attachment
Explanation:
The adjusting journal entries for the transactions has been attached. It should be noted that for (a), there was a debit of supplies expense by $400 which was calculated as:
= $500 - $100
= $400
For (d),the accounting revenue of $1000 was gotten as:
= 1/2 × $2000
= $1000
