The following production data were taken from the records of the Finishing Department for June:

Assume the demand function for basketballs is given by QD = 150 −3P + 0.1I, where P = price of a basketball, and I = average inc

TEA [102]

Answer: (1) Equilibrium price = 60 and Equilibrium quantity = 120, when I = $1500.

(2) Equilibrium price = 54 and Equilibrium quantity = 108, when I = $1200.

Explanation:

(1) When Average income (I) = $1500

At equilibrium, QD = QS

150 - 3p + 0.1I = 2p

150 - 3p + 0.1 × 1500 = 2p

5p = 300

p = $\frac{300}{5}$

p = 60

q = 2p ⇒ 2 × 60 = 120

Hence, p and q are equilibrium price and equilibrium quantity, respectively.

(2) If 20% income tax is introduced then Average income (I) = $1500 - 20% of $1500 ⇒ $1500 - $300 = $1200

At equilibrium, QD = QS

150 - 3p + 0.1I = 2p

150 - 3p + 0.1 × 1200 = 2p

5p = 270

p = $\frac{270}{5}$

p = 54

q = 2p ⇒ 2 × 54 = 108

Hence, p and q are equilibrium price and equilibrium quantity, respectively.

4 0

2 years ago

For teachers involved in gifted education programs one of the key tasks to accomplish is

Tasya [4]

<span>A gifted education teacher has a rewarding task, to enrich the intellect of those students who are not being challenged by the regular school curriculum. One of the key tasks is to promote a sense of community, of not being different or alone, and to ease anxiety that the student may feel by being "different"></span>

4 0

3 years ago

The endpoints (horizontal and vertical intercepts) of the budget line: Group of answer choices represent the quantity of each go

erik [133]

Answer:

represent the quantity of each good that could be purchased if all of the budget were allocated to that good.

Explanation:

The budget line is a graph which shows the two combinations of goods a consumer can consume given price and income level

<u>Properties of the budget line </u>

When income increases, the budget line shifts outward and shifts inward when income decreases
the horizontal and vertical intercepts represent the quantity of each good that could be purchased if all of the budget were allocated to that good.
the budget line is a straight line. This indicates that the marginal rate of substitution is constant
the budget line is negatively sloped

4 0

2 years ago

You had a part time job that paid you $950 in one tax year. Do you have to file a

noname [10]

Yes, you do have to file a tax return

6 0

2 years ago

On January 15, the end of the first pay period of the year, North Company’s employees earned $26,000 of sales salaries. Withhold

Contact [7]

Answer: Please see the explanation column

Explanation:

Journal entry to record North Company’s salaries expense and related liabilities.

Date Particulars Debit Credit

Jan, 15 Sales salaries expense $26,000

To FICA Social Security taxes

payable at 6.2% $1,612

To FICA Medicare taxes

payable at 1.45% $377

To federal income taxes payable $2,000

To employee medical insurance payable $429

To employee union dues payable $180

Sales Salaries Payable $21.402

Working :

FICA Social Security taxes = 6.2% x $26,000 = $1,612

FICA Medicare taxes = 1.45% x 26,000 = $377

Salary payable =Sales salaries expense -(FICA Social Security taxes payable + FICA Medicare taxes payable + federal income taxes payable+medical insurance payable +employee union dues payable ) = 26,000 - (1612+377+2000+429+180)=$21,402.

6 0

2 years ago