Question: The demand function for widgets is given by D(P) = 16 − 2P. Compute the change inconsumer surplus when price of a widget increases for $1 to $3. Illustrate your result graphically
Answer:
For price of a widget equal to $1 consumer surplus is
D(1) = 16 - 2(1) = 14
CS₁ = ½ × (8 – 1) × D(1) = ½ × 7 × 14 = 49.
When price is equal to $3 consumer surplus is
D(3) = 16 - 2(3) = 10
CS₃ = ½ × (8 – 3) × D(3) = ½ × 5 × 10 = 25
Answer:
The correct response will be "Paying a premium price
".
Explanation:
- Each consumption has the fundamental economic intention of obtaining products that have the highest possible and the limit requirements at the lowest competitive prices.
- And therefore, satisfied customers frequently ignore that instinct because some other manufacturer is still connected to something like the commodity.
Answer:
Look at the explanation
Explanation:
<u>Advantages:</u>
1. Measure profit and losses at different levels of production and sales.
2. Predict the effect of cost and efficiency changes on profitability.
<u>Disadvantages:</u>
1. Assumes that sales prices are constant at all levels of output
2. Break even charts may be time consuming to prepare.
Hope this helps! :)
Answer:
See explanation section
Explanation:
1. Debit Cash $17,000
Credit Service revenue (music) $17,000
<em>Note: The academy receives cash by providing music services to the students.</em>
2. Debit Prepaid Insurance $4,200
Credit Cash $4,200
<em>Note: The academy paid cash in advance to purchase insurance policy.</em>
3. Debit Musical Equipment $20,000
Credit Cash $20,000
<em>Note: The academy paid cash for acquiring musical equipment.</em>
4. Debit Cash $30,000
Credit Notes payable $30,000
<em>Note: The academy borrowed cash by signing a notes from the bank.</em>
Answer:
The correct answer is D
Explanation:
Feasibility analysis is the analysis which is used in order to determine or state the viability of the project like ensure the project is legal and economically justifiable and technically feasible.
In short, it states that the project is worth or not the investment. So, when the studies indicate the low incidence, then the firm is concerned regarding the feasibility of the project, that it would probably determine or state whether or not the questions could be answered.
