What is the maximum locked-rotor

Consider the market for plane tickets to Hawaii. A bad winter in the mainland United States increases demand for tropical vacati

gavmur [86]

Answer:

Increase

Explanation:

Consumer surplus means the difference between the highest price a consumer is willing to pay and the actual market price of a product

Producer surplus means the difference between the market price and the lowest price a producer is willing to take for his product.

The addition of the two gives total surplus which is also known as economic surplus.

In economics, market price and quantity of a good are obtained when supply and demand curves intersect. The space before the intersection of the two curves is where the consumer is ready to pay higher than the price which suppliers is ready to a given quantity the good. There is therefore surplus for both of them at the market price.

If the demand curve shifts to the right while the supply curve remains constant, the market price will rise and this will lead to increase both consumer and producer surplus increase. By implication, total surplus will rise since it is the addition of both consumer and producer surplus.

Therefore, total surplus will increase if a bad winter in the mainland United States increases demand for tropical vacations, which shifts the demand curve to the right while the supply curve stays constant.

I wish you the best.

5 0

4 years ago

Eneri Company's inventory records show the following data: Units Unit Cost Inventory, January 1 10000 $9.20 Purchases: June 18 9

Gre4nikov [31]

Answer:

$206,000

Explanation:

Beginning inventory 10,000*9.2 $92,000

Purchases during the month (9000*8+ 6000*7) $114,000

Cost of Goods available for sale $206,000

3 0

3 years ago

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According to Hurka, which action would produce the greatest net gain of intrinsic good in the world?

Katarina [22]

Intrinsic good is something worthwhile not because it leads to something else, but for its own sake alone. So the answer isTaking someone from +7 to +8.

7 0

4 years ago

Mercury Corporation issued 3,500 shares of no-par common stock for $20 per share. Mercury also issued 3,200 shares of $50 par, 6

TEA [102]

Answer:

Financing activities as all transaction related to stock of the company where they are issued in exchange of cash.

Assets = Equity

Cash 70,000 = Common Stock 3,500 + Additional 66,500

Cash 192,000 = preferred 160,000 + additional 32,000

Explanation:

The cash received will be calcualted withe issance price

the common stock and prefferred with the par value ($1 for common and $50 for preferred) the additional paid-in will be the difference.

Calculations:

First issuancce

cash:

3,500 x $20 = 70,000

common stock 3,500 shares x $1 = 3,500

additional 70,000 - 3,500 = 66,500

Second issuancce

cash:

3,200 x $60 = 192,000

preferred stock 3,200 x $50 = 160,000

additional paid-in 192,000 - 160,000 = 32,000

7 0

4 years ago

Flint Corporation issued 700 shares of no-par common stock for $7,800. Prepare Flint’s journal entry if (a) the stock has no sta

Masja [62]

Answer:Flint corporation journal $

Date

1. Bank account Dr 7800

Common stock Or. 7800

Narration. Issuance of 700 ordinary stock for $7800 .

2. Bank account Dr 7800

Common stock Cr. 1400

Share premium. 6400

Narration. Issuance of 700 ordinary at $7800 at a premium.

Explanation:

Shares can be issued at par, premium or discount. When it's issued at it's nominal value it's said to be issued at par, when it's issued above it's nominal value it's said to be issued at a premium and when it's issued below par it's said to issued at a discount.

4 0

3 years ago

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