All categories

2 years ago

If the price of an ice-cream cone falls to $3, the consumer surplus of alexis, bruno, and camila increases by:.

Business

1 answer:

Serhud [2]2 years ago

6 0

The consumer surplus of Alexis, Bruno, and Camila increases by $7.

<h3>What is consumer surplus?</h3>

Consumer surplus is the difference between the willingness to pay of a consumer and the price of the good.

Consumer surplus = willingness to pay – price of the good

Initial consumer surplus = ($12 - $6) + ($8 - $6) = $8

New consumer surplus = ($12 - $3) + ($8 - $3) + ($4 - $3) = $15

Change in consumer surplus = $15 - $8 = $7

Here is information on the question:

Alexis is willing to pay $12, Bruno is willing to pay $8; and Camila is willing to pay $4. The market price is $6.

To learn more about consumer surplus, please check: brainly.com/question/25816093

You might be interested in

In early July, Damon Rutton purchased a $70 ticket to the December 15 game of the Sarasota Shippers. Parking for the game was ex

Bingel [31]

Answer:

Sunk cost will be = $70

Explanation:

Sunk Cost refers to the cost for which the amount has been already spent, and cannot be recovered. These are generally incurred and then not regarded for decision making as irrespective of decision being viable or not this cost cannot be avoided.

In the given instance, Damon Rutton Purchased the ticket of $70

This is the only cost which has already been incurred, else other costs of parking and food will only be incurred if he visits the game of Sarasota Shippers.

When he spend some time with his wife sunk cost will be = $70

8 0

3 years ago

Perez Company reported the following data regarding the product it sells: Sales price $ 56 Contribution margin ratio 25 % Fixed

suter [353]

Answer:

Contribution margin ratio = 1 - variable cost ratio

= 25%

(a) $Break\ even\ in\ dollars=\frac{fixed\ costs}{contribution\ margin}$

$Break\ even\ in\ dollars=\frac{350,000}{0.25}$

= 1,400,000

$Break\ even\ in\ units=\frac{Break\ even\ in\ dollars}{sales\ price}$

$Break\ even\ in\ units=\frac{1,400,000}{56}$

= 25,000

(b) For profit of $42,000,

$sales=\frac{Profit+fixed\ cost}{contribution\ margin\ ratio}$

$sales=\frac{42,000+350,000}{0.25}$

= 1,568,000

$In\ units=\frac{sales}{sales\ price}$

$In\ units=\frac{1,568,000}{56}$

= 28,000

= $56 × 75%

= $42

New contribution margin = $\frac{New\ sales\ price-variable\ cost}{New\ sales\ price}$

New contribution margin = $\frac{70-42}{70}$

= 0.4

= 40%

$New\ Break\ even\ in\ dollars=\frac{fixed\ costs}{contribution\ margin}$

$New\ Break\ even\ in\ dollars=\frac{350,000}{0.4}$

= $875,000

$New\ Break\ even\ in\ units=\frac{New\ Break\ even\ in\ dollars}{New\ sales\ price}$

$New\ Break\ even\ in\ units=\frac{875,000}{70}$

= 12,500

3 0

3 years ago

The journal entry a company records for the issuance of bonds when the contract rate is greater than the market rate would be

ahrayia [7]

Answer:

C. debit cash, credit premium on bonds payable and bonds payable

Explanation:

Since the contract rate is greater than the market rate, the bond is issued at a premium. And, the journal entry is shown below:

Cash A/c Dr XXXXX

To Premium on bonds payable A/c XXXXX

To Bonds payable A/c XXXXX

(Being bond is issued at a premium is recorded)

When the bond is issued at a premium, we debited the cash account and credited the premium on bonds payable and bonds payable account

4 0

3 years ago

Marking brainliest!! Ms. Rivera needs advice. She wants to pay her taxes on time and figure out how she can save money to retire

Yuki888 [10]

A. Personal

Personal accountant: A person who has the requisite skill and experience in establishing and maintaining accurate financial records for an individual or a business.

5 0

2 years ago

Read 2 more answers

Which statement explains a proportional tax system?

-Dominant- [34]

Answer:

The tax rate is the same for all income levels.

Explanation:

A proportional tax system is a tax mechanism that applies equal rates to all income brackets. This system does not segregate based on income earned. The proportional tax system is also the flat rate system.

Since the proportional tax system applies the same rate to all taxpayers, it means that the low income, middle, and high-income earners pay tax at the same rate. The proportional tax system contrasts with other methods, such as the progressive tax system that considers income levels.

7 0

4 years ago