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1. Given the following demand and supply functions Qd = 500 - 3P Qs = 100 + 5P Calculate; i. The equilibrium price and the equilibrium quantity ii. The consumer surplus iii. The producer surplus)R

Answers

Answer 1

Given:

The demand and supply functions are:

[tex]Q_d=500-3P[/tex]

[tex]Q_s=100+5P[/tex]

To find:

i. The equilibrium price and the equilibrium quantity.

ii. The consumer surplus .

iii. The producer surplus.

Explanation:

(i) At equilibrium, the demand and supply are equal. So, equating both functions, we get

[tex]500-3P=100+5P[/tex]

[tex]500-100=3P+5P[/tex]

[tex]400=8P[/tex]

Divide both sides by 8, we get

[tex]\dfrac{400}{8}=P[/tex]

[tex]50=P[/tex]

Putting [tex]P=50[/tex] in the demand function, we get

[tex]Q_d=500-3(50)[/tex]

[tex]Q_d=500-150[/tex]

[tex]Q_d=350[/tex]

Therefore, the equilibrium price is 50 and the equilibrium quantity is 350.

(ii)

The area under the demand curve and above the equilibrium price is known as consumer surplus. It is represent by the green area in the below figure.

The area of a triangle is:

[tex]A=\dfrac{1}{2}\times base \times height[/tex]

So, the area of consumer surplus is:

[tex]A=\dfrac{1}{2}\times 50 \times (500-350)[/tex]

[tex]A=25 \times 150[/tex]

[tex]A=3750[/tex]

Therefore, the consumer surplus is 3750.

(iii)

The area above the supply curve and below the equilibrium price is known as producer surplus. It is represent by the purple area in the below figure.

So, the area of producer surplus is:

[tex]A=\dfrac{1}{2}\times 50 \times (350-100)[/tex]

[tex]A=25 \times 250[/tex]

[tex]A=6250[/tex]

Therefore, the producer surplus is 6250.

1. Given The Following Demand And Supply Functions Qd = 500 - 3P Qs = 100 + 5P Calculate; I. The Equilibrium

Related Questions

The Molding Division of Cotwold Company manufactures a plastic casing used by the Assembly Division. This casing is also sold to external customers for $25 per unit. Variable costs for the casing are $12 per unit and fixed cost is $3 per unit. Cotwold executives would like for the Molding Division to transfer 8,000 units to the Assembly Division at a price of $18 per unit. Assume that the Molding Division has enough excess capacity to accommodate the request.
Calculate the effect on Molding Division’s net income if it accepts the $18 transfer price.

Answers

Answer:

the effect on Molding Division’s net income if it accepts the $18 transfer price is $6 per unit

Explanation:

The computation of the effect on Molding Division’s net income if it accepts the $18 transfer price is shown below:

= Transfer price - variable cost per unit

= $18 - $12

= $6 per unit

Hence, the effect on Molding Division’s net income if it accepts the $18 transfer price is $6 per unit

So, the same is to be considered and relevant

The accounting records of Whispering Winds Corp. show the following data. Beginning inventory 3,010 units at $6 Purchases 8,130 units at $8 Sales 9,090 units at $11. Determine cost of goods sold during the period under a periodic inventory system using the FIFO method, the LIFO method, and the average-cost method.

Answers

Answer:

$66,700

b. LIFO = $70800

67807.81

Explanation:

LIFO means last in first out. It means that it is the last purchased inventory that is the first to be sold.

(8130 x 8) + [(9090 - 8130) x 6) = 70800

FIFO means first in, first out. It means that it is the first purchased inventory that is the first to be sold

(3010 x 6) + [(9090 - 3010) x $8] = 66,700

Average cost = [(3010 x 6) + (8130 x 8)] /

18060

48640

b 65040

5760

Balance Sheet Jay Pembroke started a business in April. Prepare a Balance Sheet using the following balances for April transactions. Cash $12,950 Accounts Receivable 2,000 Office Supplies 4,600 Prepaid Insurance 1,200 Accounts Payable $300 Jay Pembroke, Capital 18,000 Jay Pembroke, Drawing 100 Service Fees 3,300 Rent Expense 750 You will need to calculate the ending balance of the Capital account.

Answers

Answer:

Jay Pembroke Company

Balance Sheet as of April 30

Assets:

Cash $12,950

Accounts Receivable 2,000

Office Supplies 4,600

Prepaid Insurance 1,200

Total assets $20,750

Liabilities:

Accounts Payable $300

Jay Pembroke, Capital 20,450

Total liabilities + equity $20,750

Explanation:

a) Data and Calculations:

Assets:

Cash $12,950

Accounts Receivable 2,000

Office Supplies 4,600

Prepaid Insurance 1,200

Liabilities:

Accounts Payable $300

Statement of Owner's Equity:

Jay Pembroke, Capital 18,000

Net income 2,550

Jay Pembroke, Drawing (100)

Ending Capital 20,450

Income Statement for the month ended April 30

Service Fees 3,300

Rent Expense 750

Net income 2,550

Consider the following time series data. Week 1 2 3 4 5 6 Value 19 13 15 12 17 15 Using the average of all the historical data as a forecast for the next period, compute the following. (Round your answers to two decimal places.)
measures of forecast accuracy:Mean absolute error (MAE)Mean squared error (MSE)Mean absolute percentage error (MAPE)Round your answers to two decimal places.MAE =MSE =MAPE =Using the average of all the historical data as a forecast for the next period, compute the same three values. Round your answers to two decimal places.MAE =MSE =MAPE =Which method appears to provide the more accurate forecasts for the historical data?

Answers

Answer:

1. We have:

MAE = 3.60

MSE = 15.60

MAPE = 25.45

2. We have:

MAE = 2.62

MSE = 11.11

MAPE = 19.59

3. The average of all the historical data provides the more accurate forecasts for the historical data.

Explanation:

Note: This question is not correct as the average of all the historical data is asked to be used as a forecast for the next period in requirements 1 and 2 instead of the naïve method (most recent value) for the first requirement. The correct question is therefore presented before answering the question as follows:

Consider the following time series data.

Week 1 2 3 4 5 6

Value 19 13 15 12 17 15

1. Using the naïve method (most recent value) as the forecast for the next period, compute the following (Round your answers to two decimal places.) measures of forecast accuracy:

a. Mean absolute error (MAE)

b. Mean squared error (MSE)

c. Mean absolute percentage error (MAPE).

2. Using the average of all the historical data as a forecast for the next period, compute the same three values. Round your answers to two decimal places.

3. Which method appears to provide the more accurate forecasts for the historical data?

The explanation of the answer is now provided as follows:

The following formulae are to be used:

MAE = Total of Error / Number of observations

MSE = Total of Error^2 / Number of observations

MAPE = Total of Error % / Number of observations

1. Using the naïve method (most recent value) as the forecast for the next period, compute the following (Round your answers to two decimal places.) measures of forecast accuracy:

Note: See part 1 of the attached excel file for the determination of Naïve and Calculations of Error, Error^2 and Error % using the naïve method as the forecast for the next period.

From the attached excel file, we have:

MAE = 18.00 / 5 = 3.60

MSE = 78.00 / 5 = 15.60

MAPE = 127.23 / 5 = 25.45

2. Using the average of all the historical data as a forecast for the next period, compute the same three values. Round your answers to two decimal places.

Note: See part 2 of the attached excel file for the determination of Naïve and Calculations of Error, Error^2 and Error % using the average of all the historical data as a forecast for the next period.

From the attached excel file, we have:

MAE = 13.12 / 5 = 2.62

MSE = 55.55 / 5 = 11.11

MAPE = 97.94 / 5 = 19.59

3. Which method appears to provide the more accurate forecasts for the historical data?

The average of all the historical data provides the more accurate forecasts for the historical data comparing the values of its MAE, MSE and MAPE to the values of MAE, MSE and MAPE of Naive method. This is because the error values of the average of all the historical data are much lowest and more closest to the actual data.

If an employee always stays on-task and
typically finishes work in a timely
manner, what type of control is required?
A. Flexible
B. Close
C. Limited
D. Open

Answers

the answer is c because hes limited to what he can controll

An upward-sloping yield curve Multiple Choice may be an indication that interest rates are expected to increase. may incorporate a liquidity premium. may reflect the confounding of the liquidity premium with interest rate expectations. All of the options are correct. None of the options are correct.

Answers

Answer:

All of the options are correct.

Explanation:

The upward sloping yield curve includes the signal with related to the rate of interest that are predicted to rise. It incorporated the liquidity premium. Also it present the liquidity premium along with the predictions of the rate of interest that should be confounded

so as per the given situation, all given statement should be considered

hence, all of the options are correct should be relevant

Why do accountants not keep all the accounts at their proper balances continuously throughout the period so that adjusting entries would not have to be made before financial statements are prepared

Answers

Answer:

The transactions are recorded when they incur and then there may be some changes in those transaction later on, they all are adjusted at month end with adjusting entries.

Explanation:

It is not possible for an accountant to continuously keep updating every transaction. They all are recorded at inception and then any changes made in those transactions are adjusted at the month end. All balance are reconciled and verified. There can be events which lead to changes to the transaction after the reporting date then these events are considered as events after reporting period and they are treated differently according to guidelines specified in IAS 10.

How do you identify the need for the meeting?

Answers

What do they mas talk is the need for the meeting and if not what Is the meeting about and that the need

Preferred stock has characteristics of both debt and common stock. Which characteristics of preferred stock resemble that of common stock

Answers

Answer:

The characteristics of preferred stock that resemble that of common stock is that both give the stockholder partial ownership of the entity, otherwise, called equity rights.

Explanation:

Preferred stocks do not confer on the stockholders the right of repayment until the company is liquidated, just like common stock, unless they are redeemable. They can be converted to common stock. Unlike common stock, preferred stock does not give voting rights to the stockholders. Preferred stockholders enjoy priority over a company's income because they are paid dividends before common stockholders.

When constructing a demand function, it is necessary to hold many other factors constant, so that a relationship between price and output can be established.

a. True
b. False

Answers

Answer:

True

Explanation:

The given statement is true because there are other factors that impact the demand for a commodity for example if the income of a person rises then the person will consume more commodity and the demand curve will shift.

Therefore, other factors should be constant while constructing the demand function because keeping other factors constant will not impact the price and output relationship.

The most important/essential results from the latest decision round that company managers need to review/study in order to guide their strategic moves and decisions to improve their company's competitiveness and rank among the top-performing companies in the upcoming decision round are:_________.
a. the celebrity endorsement data and the 4 graphs showing branded price and S/Q rating trends in each of the four geographic regions on p. 7 of the FIR.
b. the Income Statement and Balance Sheet data on p. 5 of the FR.
c. the strategic group maps for the Internet segment and Wholesale segment for each geographic region in the Competitive Intelligence Report.
d. the Industry Scoreboard and each company's performance on EPS, ROE, stock price, credit rating and image rating displayed on the first 3 pages of the FIR.
e. the Market Snapshot data in the top half of the Competitive Intelligence Report that shows each company's competitive efforts (prices, S/Q rating, models available, and so on) in each geographic region.

Answers

Answer:

e. the Market Snapshot data in the top half of the Competitive Intelligence Report that shows each company's competitive efforts (prices, S/Q rating, models available, and so on) in each geographic region.

Explanation:

In the case when the results arise from the recent decision that taken place the company or the manager should have to study for improving out the competitiveness and the ranking so that the market snapshot data could be done for all the zones and due to this the good decision could be carried out that helps in attaining the goals and objectives of the company

So, the last option is correct

Bal Corp. declared a $25,000 cash dividend on May 8, 20X5, to stockholders of record on May 23, 20X5, payable on June 3, 20X5. As a result of this cash dividend, working capital
a) Was not affected.
b) Decreased on June 3.
c) Decreased on May 23.
d) Decreased on May 8.

Answers

Answer:

b) Decreased on June 3

Explanation:

May 8, 20X5

This is the dividend declaration date. The accountant simply makes an accounting entry to recognize dividend (debit) and increases liabilities arising due to shareholders for dividend obligation (credit)

May 23, 20X5

This date gives us the number of shareholders who are eligible for the dividend.

June 3, 20X5

This date is when the cashflow happens, Cash decreases by $25,000 and the liability once recognized on May 8, 20X5 decreases. Cash is an element of Working Capital. Decrease in cash means a decrease in Assets and consequently a decrease in working capital.

On June 30, 2021, Moran Corporation issued $12.5 million of its 12% bonds for $11.4 million. The bonds were priced to yield 14%. The bonds are dated June 30, 2021. Interest is payable semiannually on December 31 and July 1. If the effective interest method is used, by how much should the bond discount be reduced for the six months ended December 31, 2021

Answers

Answer:

the reduction in the bond discount is $48,000

Explanation:

The computation of the reduction in the bond discount is as follow;

= ($11,400,000 × 14% × 1 ÷ 2) - ($12,500,000 × 12% × 1 ÷ 2)

= $798,000 - $750,000

= $48,000

Hence, the reduction in the bond discount is $48,000

Here we considered half as the interest is payable on semi-annual basis

The traditional nonprofit sector has experienced considerable change in recent years with new strategies, actors, and funding vehicles, which have increased the quantity of private capital earmarked for social good.

a. True
b. False

Answers

Answer:

a. True

Explanation:

The Traditional nonprofit center has been changing like the profit for the business in the current years. It includes the various types of strategies and the techniques for funding and different new sources of funding has been provided due to this it created the large amount of capital for the social good purpose

Therefore the given statement is true

Preferred stock issued in exchange for land would be reported in the statement of cash flows in Group of answer choices the cash flows from financing activities section the cash flows from investing activities section a separate schedule the cash flows from operating activities section

Answers

Answer: a separate schedule

Explanation:

Preferred stock, are referred to as the shares of the stock of a company whereby the dividends are paid out to the preference shareholders before the common stock dividends are issued.

It should be noted that the preferred stock which is issued in exchange for the land will be reported in the statement of cash flows in a separate schedule.

Compare and contrast different ways in which a taxpayer triggers a realization event by disposing of an asset.

Answers

Answer:

There are many ways a taxpayer can trigger a realization event. She can trigger it through a sale or trade by receiving a value greater than the disposed asset. She can also trigger a realization event by making a gift to charity. Other ways include disposal, for example, to a landfill and destruction through natural disaster. In the latter cases, there is a loss to the taxpayer. With a natural disaster, the taxpayer can only obtain a realization gain if reimbursed by the insurance company.

Explanation:

A realization event happens when there is a sale or a disposal of an asset or a discharge from a liability. There is usually an increase in the value realized from the disposal, which is greater than the asset's value before disposal. It also happens when the taxpayer receives a relief from a liability or completes a profitable transaction.

the role of government in real estate at the federal, state, and local level. Which has the most significant impact on real estate markets

Answers

Answer:

Local government has the most influence on real estate markets. It affects the supply and cost of real estate through zoning and land use regulations, fees on new land development, and restrictive building codes.

Answer:

It affects the supply and cost of real estate through zoning and land use regulations, fees on new land development, and restrictive building codes.... state government generally has the least influence on real estate.

Explanation:

A registered representative is considering prospecting a wealthy family member to see if she will open a brokerage account at his firm. The registered representative checks the National Do-Not-Call List and finds the family member there. The registered representative checks the firm's Do-Not-Call list and does not find the family member there. Which statement is true?
A. This prospect cannot be called by the registered representative.
B. This prospect can be called by the registered representative.
C. This prospect can only be called by the registered representative between the hours of 8:00 AM and 9:00 PM.
D. This prospect can only be called by the registered representative with written approval of the #24 General Principal.

Answers

Answer:

B. This prospect can be called by the registered representative.

Explanation:

A registered representative may be defined as a person working for a client facing financial firm like the brokerage firm and he acts as the representative for the clients who are trading the investment products as well as securities.

In the context, the prospect can be called by the registered representative. But there are three exceptions that are provided for the cold calls to any individual who are on the national Do not call list :

--- Established business relationship exception.

--- Prior express written consent exception

--- Personal relationship with the associated person exception.

Therefore, option (B) is correct.

Bush Company reported net income of $60,000 for the year. During the year, accounts receivable decreased by $8,000, accounts payable increased by $4,000 and depreciation expense of $5,000 was recorded. Net cash provided by operating activities for the year is Group of answer choices

Answers

Answer:

Net income from operating activities = $77000

Explanation:

Below is the calculation for Net income from operating activities:

Given the net income = $60000

Decrease in accounts receivable = $8000

Increase in accounts payable = $4000

Depreciation = $5000

Add the values in the net income in order to get the net income from operating activities.

Net income from operating activities = 60000 + 8000 + 4000 + 5000

Net Income from operating activities = $77000

The types of management skills

Answers

Answer:

Technical Skills Technical skills involve skills that give the managers the ability and the knowledge to use a variety of techniques to achieve their objectives. ...