Answer:
a. Equilibrium quantity: 40 units; Equilibrium price: $40.
b. Quantity demanded: 10 units; Quantity supplied: 30 units; Surplus: 20 units.
c. Quantity demanded: 9 units; Quantity supplied: 31 units; Shortage: 22 units.
Explanation:
a. The equilibrium quantity occurs when the demanded and supplied quantity are the same, the price for which this situation happens is:
At an equilibrium price of $40, the equilibrium quantity is:
b. At a price of $50, the quantity demanded, the quantity supplied, and the magnitude of the surplus are, respectively:
c. At a price of $29, the quantity demanded, the quantity supplied, and the magnitude of the shortage are, respectively:
Economy. And it may be good on the environment, but economy is what best fits this question.
Answer:
A surplus of avocados will result from the price ceiling.
Explanation:
A price ceiling is when the government or an agency of the government sets the maximum price for a good or service.
A price ceiling is binding when it is set below equilibrium price.
The price ceiling ($4.50) is less than the equilibrium price ($4) of avocados. As a result, surplus would increase. The supply of avocados would exceed the demand because price ceiling is above equilibrium price
Answer:
A. Dividends 11,700 Dividends Payable 11,700
Explanation:
The journal entry to record the dividend declared is shown below:
Dividend A/c Dr $11,700
To Dividend payable $11,700
(Being the dividend is declared)
The computation is shown below:
= (Number of shares issued - treasury stock) × cash dividend per share
= (20,000 shares - 7,000 shares) × $0.90
= 13,000 shares × $0.90
= $11,700
Answer:
$309
Explanation:
The computation of the gross earning for the week is as follows:
Given that
Payment of $7.15 × 8 = $57.2 or payment of each unit produced whichever is greater
On monday
= 90 units × $0.60
= $54
But the greater is $57.2
On tuesday
= 114 units × $0.60
= $68.4
On Wednesday
= 82 units × $0.60
= $49.20
But the greater is $57.2
On thursday
= 112 units × $0.60
= $67.20
On friday
= 98 units × $0.60
= $58.80
Now the earnings for the last week is
= $57.20 + $68.4 + $57.20 + $67.20 + $58.80
= $308.80
= $309
