Answer:
as taxes increase, there is a decrease in supply
Explanation:
The aggregate demand curve shifts to the right
Answer:
In the short run, these workers are VARIABLE inputs, and the ovens are FIXED inputs.
Explanation:
Workers are variable inputs since Raphael can decide to change the number of employees hired every week or every certain period of time. On the other hand, the number of ovens cannot change immediately since Rapheal would need to move to some other place in order to increase the number of ovens.
Answer:
Increase in Motel cost = $10 per night for additional bed * 4 day = $10 * 4 = $40
Additional food cost = $150
Therefore, total cost of including Kallie for the trip is $40 + $150 = $190
1. Incremental Analysis
Without K With K Incremental cost
Motel cost $580 $620 $40
Food $300 $450 $150
Gas in total <u>$120</u> <u>$120 </u> <u> - </u>
Total Incremental cost <u>$1,000</u> <u>$1,190</u> <u>$190</u>
It would cost $190 for Kallie to accompany along
2. Cost to Kallie using benefits received method
Particulars Amount
Motel ($580 + 40)/3 $206.67
Food $150
Gas ($120/3) <u>$40 </u>
Total <u>$396.67</u>
Thus, cost to Kallie using benefits received method would be $396.67.
