A personal budget is comprised of three basic components: income, expenses, and savings. Each of the three components helps to make sure that a household runs smoothly and makes responsible use of its revenue.
'What is budget?'
A budget is sometimes described as an estimation of revenue and expenses for a given period that is put together and then periodically reevaluated. In essence, it is an estimation of all the costs and income.
The only way to obtain accurate financial information when it comes to budgeting and forecasting is to make sure that these three crucial components of a budget operate in perfect harmony. To create the ultimate business budget, you need all three; you can't expect one to work without the other two.
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What are three important questions you should ask yourself before making a purchase?
Before making a purchase we should consider these questions: Can I pay for this item using cash? Is this the most affordable price I can find for this product? How many hours will it take you to earn enough money to make this purchase? What other ways may I use this money? etc.
Make sure you are financially capable of making a significant buy and that it is within your means. What counts as a major purchase depends on a variety of factors, including household income, debt load, and size of retirement savings.
Making a significant financial decision for your company, such as a new hire or a new marketing initiative, can be intimidating. Make sure your investments are wise and will result in a profitable return on your capital.
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What are the 4 basic component of the environment?
The components of environment are 1. Atmosphere, 2. Hydrosphere, 3. Lithosphere and 4. Biosphere.
1. Atmosphere: The atmosphere is a mixture of gases that surrounds the earth and helps to sustain life. It is composed of 78% nitrogen, 21% oxygen, and 1% other gases such as carbon dioxide and argon. It also contains water vapor and dust particles.
2. Hydrosphere: The hydrosphere refers to all the bodies of water on Earth, including oceans, rivers, lakes, and ponds. It also includes any water found in the atmosphere, such as clouds, fog, and rain.
3. Lithosphere: The lithosphere is the solid outer layer of the Earth. It includes the crust of the Earth, which is composed of continental and oceanic plates.
4. Biosphere: The biosphere is the layer where living organisms exist. It includes all the animals, plants, and microorganisms that live on land, in water, and in the air. It is the most complex of the four components of the environment.
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The key economic concept that serves as the basis for the study of economics is
The key economic idea that fills in as a reason for the investigation of economics is: Scarcity. As a result of the issue of scarcity: People need to pursue decisions from among options.
Four critical economic ideas — scarcity, supply and demand, costs and advantages, and impetuses — can assist with making sense of numerous choices that people make.
Scarcity makes sense of the fundamental economic issue that the world has restricted — or scant — assets to meet apparently limitless needs, and this reality powers individuals to settle on conclusions about how to assign assets in the most effective manner.
Because of scant assets, people are continually pursuing decisions not entirely settled by their costs and advantages and the motivating forces presented by various strategies.
Financial analysts address these three inquiries: (1) What labor and products ought to be delivered to address purchaser issues? (2) How might they be created, and who ought to deliver them? (3) Who ought to get labor and products?
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Why does the Texas Real Estate Commission approve or promulgate, or both, specific forms to be used in real estate transactions?
Texas Real Estate Commission approves standardized forms that can assist safeguard all parties involved as the great majority of property transactions are identical in nature.
The Texas Real Estate License Act was created by the Texas state government to safeguard the public against dishonest brokers and salespeople. TRELA establishes guidelines that license holders must adhere to in order to get and thereafter maintain a real estate license.
The TREC's applications are public records, thus anyone can access them. However, estate licensees, who are typically compelled to utilize these papers, are who they are primarily designed for.
Registration Forms are True estate of Right-of-Way or Easement. Inspectors, educators, etc Registration Forms Asked for a fitness assessment. True estate. a right of way or an easement. Inspectors. aspiring inspector Property inspector.
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Goals of data analysis Consider the following scenario. An economist uses historical stock prices of a company to forecast future stock prices and determine optimal equity trading strategies. This scenario most closely aligns with which of the following goals of data analysis? Quantifying relationships O Testing hypotheses Describing the economy Predicting the future
The goal of the data analysis in this scenario is to predict the future. The economist is using historical stock prices of the company to forecast future stock prices and determine optimal equity trading strategies.
This involves looking at the current market conditions and trends, analyzing the past performance of the stock, examining the historical performance of the company, and using statistical models to predict the future performance of the stock. By predicting the future stock price, the economist can develop trading strategies that will maximize return on investment. This is the primary goal of the data analysis in this scenario.
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An agent is permitted to open all of the following customer accounts except A) a partnership account opened by the designated partner. B) a corporate account opened by the designated officer. C) an account in the name of Mrs. Jones opened by Mr. Jones. D) a minor's account opened by a custodian.
C) An agent is permitted to open all of the following customer accounts except an account in the name of Mrs. Jones opened by Mr. Jones.
Which of the following account holders can authorize another holder to trade? Only Second Parties have the authority to open accounts, hence only a Second Party has the authority to grant trading permission to a First Party (for a discretionary account) or a Third Party (a Third Party trading authorization).
When a business wishes to open a cash account with a broker-dealer, which of the following paperwork won't be necessary?
Since the corporation wants to open a "Cash" account, a margin agreement is not necessary to open the account, as can be seen by carefully reading the query.
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What is meant by scarcity ?
Scarcity is a foundational concept in economics, representing the limited availability of goods, services, or resources in comparison to the high level of desire for them.
It is a basic economic problem that arises out of the conflict between limited resources and unlimited wants. When something is scarce, it means that there is a limited amount of it available to be shared by everyone.
This can lead to higher prices and competition over resources, creating a situation in which people must make choices between competing alternatives. Examples of scarce goods include oil, land, food, and water.
Scarcity is a basic economic concept that describes the finite nature of resources. It refers to the limited availability of a good or service, compared to the demand for it.
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Which statement is not a relevant consideration when evaluating a potential conflict of interest in connection with a merger involving your audit client?
1> Whether your firm’s policies prohibit such engagements.
2> Whether a violation of the code would subject your firm to substantial penalties.
3> Whether the appropriate persons at the client consent to your firm’s performing the services.
4> Whether threats to your compliance with the code would be at an acceptable level.
The appropriate persons at the client consent to your firm’s performing the services is not relevant, considering when evaluating a potential conflict of interest in connection with a merger involving your audit client.
What is a merger?A merger is an agreement that unites two existing businesses into one brand-new company. There are different types of mergers as well as several reasons why businesses might merge.When assessing an upcoming or forth-coming conflict of interest with respect to a merger affecting your audit client, if the individuals at the explicit permission with respect to the firm on delivering the assistance is irrelevant.A merger can be defined as a corporate agreement (contract) that combines and unites two (2) or more existing companies into a single (new) company.Some of the considerations which is when evaluating a potential conflict of interest with respect to a merger involving an audit client include the following:Threats to compliance with the code.Existing business firm's policies.Violation of code and substantial penalties.To learn more about merger refer to:
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Common law is a term for the laws that are familiar to most of us. True False
The stated statement, "Common law is a term for the laws that most of us are familiar with," is false.
Common Law is derived from tradition or judicial judgements in English and American courts, but it is not the result of legislation. Higher courts' rulings are not legally enforceable by subordinate courts.
A corpus of unwritten rules known as common law is founded on judicially established legal precedents. In unique situations when the conclusion cannot be predicted based on existing legislation or written principles of law, common law impacts the decision-making process. The British custom that was introduced to North America during the colonial era in the 17th and 18th centuries gave rise to the American common-law system. Australia, Canada, Hong Kong, India, New Zealand, and the United Kingdom all use common law.
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Changes in real GDP reflect Question 12 options: a) both changes in prices and changes in the amounts being produced. B) neither changes in prices nor changes in the amounts being produced. C) only changes in the amounts being produced. D) only changes in prices
Changes in real GDP reflect both changes in prices and changes in the amounts being produced. While an increase in real GDP unquestionably indicates increased output, an increase in nominal GDP may only indicate an increase in prices.
The GDP deflator tracks the average prices of goods and services generated across all sectors of an economy over time because it is a produced index. Adjustments for changes in inflation are included in real GDP. This implies that real GDP will be lower than nominal GDP in an inflationary environment and vice versa. Positive inflation leads to a significant nominal GDP inflation without a real GDP correction. Real GDP growth is frequently used as a gauge of the economy's overall health.
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Which challenge requires the instructor to work with superiors to affect change within organizations
Our feelings about learning and how they change as we move from a low-order process like listening to a higher-order process like resolving a problem are all part of the affective learning domain.
Why are there three learning domains?Teachers play a crucial role in the teaching process by creating and delivering lessons. Teachers must therefore ensure that students achieve the three learning domains of cognitive (thinking), affective (emotions or feelings), and psychomotor (physical or kinesthetic).
In Krathwohl's affective domain, which of the five levels best explains each level?From the lowest to the highest level, there are five levels in the Affective Domain Taxonomy: receiving, responding, valuing, putting together, and describing (Krathwohl et al., 1964; Anderson and others, 2001).
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All the following are considered to be benefits of participative budgeting, except for: (please provide the necessary brief explanation to justify)
A. Individuals at all organizational levels are recognized as being part of a team; this results in greater support for the organization.
B. The budget estimates are prepared by those in directly involved in activities.
C. When managers set their own targets for the budget, top management need not be concerned with the overall profitability of operations.
D. Managers are held responsible for reaching their goals and cannot easily shift responsibility by blaming unrealistic goals set by others
All the following are considered to be benefits of participative budgeting, except for Individuals at all organizational levels are recognized as being part of a team this results in greater support for the organization.
The fact that participative budgeting is motivational, or more likely to inspire participants to work toward the organization's overall goals, is one of its main benefits. To flip a card, tap it.Through the concept of "participative budgeting, those who will be affected by the budget are actively involved in its preparation. With this strategy, lower-level managers feel more invested in the final budget.Cities all across the world employ participatory budgeting to include residents in decisions about government spending that affect or benefit them. Although the mechanics and procedures of participatory budgeting can differ, they often adhere to the following steps: community involvement and outreach.
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A,B and D are True C is False : It is not a benfit that Top management will not be concerned as targets set by managers.
A. True: Participatory budgeting encourages involvement from all levels, which boosts the organization's support.
B. This is accurate; those participating in the activity and in a position to offer more accurate estimations contribute to the budget inputs.
C. FALSE: Top management not caring about goals set by managers is not a benefit. The company's top management is in charge of overall performance, and they also have goals.
D. True: Managers of each function, profit centre, or cost centre are in charge of achieving the objective, and they cannot be held accountable for setting unrealistic goals since everyone has a say in how they are determined.
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A rise in oil prices has caused input prices to increase throughout the economy, causing nominal GDP to increase by 13%. Meanwhile, the price level decreases by 2%. What is the real GDP growth rate during this period
The real GDP growth rate during this period will be 15%.
Real gross domestic product (GDP) is a macroeconomic statistic reflecting the price-adjusted value of economic output (GDP). An index of total output is created by adjusting nominal GDP, a measure of economic value. Real GDP is a measure of GDP that accounts for price fluctuations, whereas nominal GDP indicates the worth of GDP in today's currency. Usually, the GDP deflator is multiplied by nominal GDP to calculate real GDP (R). For instance, if prices in an economy have increased by 1% since the base year, the deflationary number is 1.01.
We know that,% change in Quantity =% change in Nominal −% change in Price.Therefore, real GDP growth rate (% change in quantity) equals the growth rate in nominal GDP (% change in value) minus the inflation rate (% change in price).
% change in Quantity =13%−(−2%)=15%
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Compared with workers who do the same kind of work but who do not belong to labor unions, the wages of union members are approximately ___ .
The wages of union members are typically less than those of similarly skilled individuals who are not members of a union.
How do employees fare under capitalism?The capitalist's commodities enable the worker to be far more productive than he otherwise would have been. Since most people only have a limited amount of money, they would be able to buy substantially fewer or less useful capital items than the capitalist can.
Which of the following constitutes a fundamental element of capitalism?Private property, private control of the means of production, capital accumulation, and competition are some of the most crucial elements of a capitalist society. Simply said, market forces, where capital products are concerned, govern capitalist regimes.
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If you continue to use his product, he will make his tropical vacation home available to you, free of charge, for a one-week period each summer. And you love the tropics! Which stakeholders will be affected by remaining with this supplier? a. Employees b. Investors c. None of these stakeholders will be affected d. Local Community
If you continue to use his product, he will give you free access to his tropical getaway property every summer for a week. You also adore the tropics! These stakeholders won't be impacted at all.
An internal Stanford Research Institute report from 1963 defined a stakeholder of a corporation as a member of "groups without whose support the organization would cease to exist." Later, in the 1980s, R. Edward Freeman expanded and advanced the hypothesis. Since then, it has gained significant acceptance in business theory and practice, especially with regard to corporate governance, corporate social responsibility, and strategic management (CSR). Critics claim that the defining of corporate obligations through a classification of stakeholders to consider has produced a false dichotomy between the "shareholder model" and the "stakeholders model" or an improper comparison of the obligations towards shareholders and other interested persons.
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Government intervention of setting price controls can impact the __________________. For example, when a price floor is set above the equilibrium price, a very likely outcome is a ______________ in the market.
Answer:
market equilibrium, surplus
Explanation:
Government intervention of setting price controls can impact the market equilibrium. For example, when a price floor is set above the equilibrium price, a very likely outcome is a surplus in the market.
If the total adult working population of Country X is 450 million, the number of unemployed people is 95 million, and the number of employed people is 245 million, what is the labor force participation rate
to digital flash drives for $150 plus the cost of the drives. The mailbox rule will not apply if Kathryn accepts the offer by
The mailboxbox rule is a rule of contract law that states that acceptance of an offer is effective at the time it is sent, not when it is accepted. This rule will not apply if Kathryn accepts the offer by signing a written contract, as this would be an objective indication that she has accepted the offer.
In other words, if Kathryn signs the written contract, it is clear that she has accepted the offer, and the letterbox rule will not apply. The other party may also demand that Kathryn pay for the flash drives before they are delivered, which would further indicate that Kathryn has accepted the offer. Therefore, the mailbox rule will not apply if Kathryn accepts the offer by signing a written contract or paying for the flash drives.
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A $1.50 tax levied on the buyers of pomegranate juice will shift the demand curve
a. upward by exactly $1.50.
b. upward by less than $1.50.
c. downward by exactly $1.50.
d. downward by less than $1.50.
The answer is b. upward by less than $1.50. In this case, the $1.50 tax will cause the price of pomegranate juice to increase for buyers, which will lead to a decrease in the quantity demanded.
Effect of tax on pomegranate juice:When a tax is levied on a product, consumers will pay more for it, which will reduce their demand for the product.
The tax, however, won't completely push the demand curve upward by the tax's amount.
This is due to the fact that the effect of price increases on quantity required is not linear but rather becomes stronger as prices climb.
However, since the demand curve is downward sloping, as the price of the good increases, the quantity demanded decreases by less than the increase in price.
So, the demand curve will shift upward, but by less than $1.50.
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If the area of quare b i 144 quared feet and the length of ide a i 5 feet what i the area of quare c
If the area of square b i 144 squared feet and the length of ide a i 5 feet The area of square c is 25 square feet.
The area of square c can be determined by using the following equation:
[tex]Area of square c = (length of side c)∧2[/tex]
We know that the area of square b is 144 square feet and that the length of side a is 5 feet. Since square b is 12 times larger than square c, we can set up the following equation:
[tex](length of side c)∧2 = (1/12) × (length of side a)∧2[/tex]
Substituting in the known values, we get:
[tex](length of side c)∧2 =[/tex] [tex](1/12) × (5 feet)∧2[/tex]
Solving for the length of side c, we get:
[tex](length of side c) = (1/12)^(1/2) × (5 feet)[/tex]
(length of side c) = 0.42 feet
Therefore, the area of square c is (0.42 feet)∧2 = 0.1764 square feet = 0.18 square feet = 25 square feet.
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The complete question is-
If the area of square b is 144 square feet and the length of side a is 5 feet, what is the area of square c?
Brock and Sam started to create a budget (based on last year's income and expense statement) but got stuck. They know that you have learned how to create budgets and are asking for your help. They would like you to input the correct values for the first three months of next year
correct values for the first three months include: February Column: 1) $1,181 2) $2,494 3) $50 4) $90 5) $200 6) $58 7) $1,441 8) $1,0539) 2,106
What are the 3 types of budgets?There are his three types of budgets: surplus budgets, balanced budgets, and deficit budgets. A state budget is a financial document containing income and expenses for a year.
What are the main steps to create a budget?Determine your income. Start by making a list of all the funds you receive each month. Plan your expenses. Create a monthly spending list to see where your money is going. Calculate your credit. Identify your goals. Make a plan. Stay on track. Please consult an expert.
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complete question is this:
Brock and Sam started budgeting (based on last year's income and expense statements) but got stuck. They know you've learned how to budget and want your help. I want you to enter the correct values for the first three months of the next year
1) Lucy's salary
2) Gross income
3) Puget Sound Energy
4) food
5) Public transportation
6) Parent loan
7) Total cost
8) Cash surplus (deficit)
9) Cumulative surplus (deficit)
A business establishes virtual workspaces for several project teams in which information and expertise are continuously updated and shared among all of the work teams' members. What form of knowledge management technology is the business using
knowledge repositories. Knowledge management is the procedure for locating, gathering, compiling, and sharing information inside a company. When knowledge is difficult to acquire inside an organization.
A knowledge management system makes use of the organization's pooled knowledge to improve operational effectiveness. A knowledge base is used to support these systems. They frequently play a key role in effective knowledge management by offering a central location to store information and making it accessible. Companies with a knowledge management strategy get quicker business results as a result of enhanced organizational learning and team member cooperation, which speeds up decision-making throughout the company. Additionally, it streamlines additional administrative procedures like onboarding and training, which is said to increase employee retention and satisfaction. Three categories of knowledge tacit, implicit, and explicit knowledge are also included in the definition of knowledge management.
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Jack's yearly salary added to Amy's yearly salary makes $99,000. Amy makes 25% more than Jack. What is Amy's salary
$99,000 is the result of adding Jack's and Amy's annual salaries. Jack earns 25% less than Amy does. Amy's yearly salary is 55,000.
What does it mean yearly salary?The sum of money you receive from your company on an annual basis as compensation for the work you do is known as your annual salary. Salary typically only includes cash payments and excludes non-monetary benefits. Prior to deductions like Social Security taxes or payments to retirement plans, a person's gross income is the amount they are paid.
Your annual gross income is your income before taxes and other deductions. This number is typically used by banks to determine if they can provide you a loan or credit card. Net income is your annual income excluding taxes and other withholdings.
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A commercial building has three unused sound systems. An audio contractor is to install a new state-of-the-art audio system. The new system requires new cabling. The contractor determines that the existing cable is not to the listing of the new audio equipment, and will not use it in the future. The contractor is___________.
The contractor is to install new cabling to support the new audio system. The existing cabling does not meet the listing requirements for the new audio system, and therefore should not be used for future installations.
What is contractor?A contractor is a person or company that provides materials or services to another party for a fee. Contractors are typically used for specialized services that require particular skills and knowledge. Contractors are hired for short-term projects, such as remodeling a kitchen or building a new website. They may also be hired to complete long-term projects, such as constructing a new building or creating a marketing strategy.
The contractor should assess the layout of the building and determine the best route for running the new cables in order to ensure the best audio performance is achieved.
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Karlie wants to be an anthropologist. what is the academic requirement for this job?
a. a master’s or doctorate degree
b. on-the-job training
c. an apprenticeship
d. a community college certification
Answer:
d
Explanation:
an anthropologist is someone who studies humans , their beliefs , customs and relationship
Answer: Answer A
Explanation: it's correct :3
To install the vinyl liner, it costs $1.95 per square foot. You have $1000 in your budget to spend on the liner installation. What is the largest pool you can get without going over your liner budget
The pools have cylinder shapes with $r 1=24:text:ft radiuses. The average cost of replacing a vinyl pool liner is $2,349.
Most vinyl-lined pools start at between $65,000 and $85,000. Any style of pool that you want to have in your backyard may be customised if you pick a vinyl liner pool, as a homeowner ( Shape & Size ). Over a ten-year period, the upkeep for vinyl-lined pools is around $11,500. Is the pool's liner beginning to appear a touch tattered? Although numerous things can alter it, the normal vinyl liner has a lifespan of 10 to 15 years. Living in a region where there are frequent ground water issues and failing to maintain a stable pool's water level can both shorten the life of your liner.
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The industrial group VAN DAM shows a net result, 80% of which is from its financial income. State your views.
I believe it is a positive indicator that the VAN DAM industrial group derives 80% of the net result from its financial income. It shows that the business is able to generate revenue and profit through its financial investments, which is a sign of good financial health.
However, it is important to remember that financial income is not the only source of income for a business, so it is important to consider other sources of income. It is also important to understand the reasons why a business is able to generate such a high percentage of its income from its financial investments. This can help identify strategies and areas of focus that can help the business grow and diversify its revenue streams.
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Experts are particularly concerned about four strategic metal resources that are important for the u. S. Economy and military strength, and that must be imported. What percentage does the u. S. Import? *
Experts are especially concerned about four strategic metal resources that are critical to the United States' economy and military strength and U.S imports 90%.
What are the four strategic metal resources?Because of their importance to the US economy, national security, and the emerging green economy, copper, nickel, cobalt, and platinum group metals are considered strategic.Strategic minerals are commodities critical to national defense whose supply during war is entirely or partially dependent on sources outside the United States. Because these resources would be difficult to obtain, strict conservation and distribution controls are required.Gold, silver, tin, copper, lead, zinc, iron, nickel, chromium, and aluminum are examples of metallic resources. Sand, gravel, gypsum, halite, Uranium, and dimension stone are examples of nonmetallic resources. A mineral resource is defined as a volume of rock that is rich in one or more useful materials.To learn more about four strategic metal resources refer to :
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Determine your company's mode of entry into foreign markets. This should be based upon a serious analysis of your company's risk-return tradeoff. In your opinion, has your company taken the right approach
Every international business was nearly startled as a regional business and over time has espoused different modes of Entrance into the foreign business.
Different modes of entry into transnational business are grounded on the size of your business, your expansion strategies, the implicit size, the demand of your elected transnational request, the profitability, and the business terrain of the overseas country.
When businesses promote success within their domestic markets, they strive to expand their businesses into multinational markets, in a crack to imitate its blockbuster in overseas markets. Similarly, the company that I presently work for is trying to break into the middle- east with commodities that we aren't implicit of whether it'll bring about well there or not.
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Henry Potter owns the only well in town that produces clean drinking water. He faces the following demand, marginal revenue, and marginal cost curves:
demand : p= 70-Q Marginal Reveneu : MR = 70-2Q Marginalcost : MC = 10+Q
a. Graph these three curves. Assuming that Mr. Potter maximizes profit, what quantity does he produce? What price does he charge? Show these results on your graph. b. Mayor George Bailey, concerned about water consumers, is considering a price ceiling 10 percent below the monopoly price derived in part (a). What quantity would be demanded at this new price? Would the profit-maximizing Mr. Potter produce that amount? Explain. (Hint: Think about marginal cost.) c. George's Uncle Billy says that a price ceiling is a bad idea because price ceilings cause shortages. Is he right in this case? What size shortage would the price ceiling create? Explain. d. George's friend Clarence, who is even more concerned about consumers, suggests a price ceiling 50 percent below the monopoly price. What quantity would be demanded at this price? How much would Mr. Potter produce? In this case, is Uncle Billy right? What size shortage would the price ceiling create?
The quantity demanded is 20 units. [MR=MC; 70-2Q=10+Q; Q = 60 /3 = 20]. Shortage's size that price ceiling creates = 10 units of output [(Quantity supplied at $45 - Quantity demanded at 25)= (35 - 25)]. This shortage is because of demand's lack.
Explanationa.) The equation for the demand, marginal revenue and marginal cost for the given problem are as follows:
Demand : p= 70-Q Marginal Reveneu : MR = 70-2Q Marginalcost : MC = 10+Q
Profit is maximized at; MR=MC = 70-2Q=10+Q
Q = 60 /3 = 20
P = 70 - Q = 70 -20 = 50
10% below monopoly price=50(0.9)=45
D=70−Q=70−45=25
MC=10+25=35, MC is less than price
Surplus = Supply -demand = 35-25 =10
At P= 50% below monopoly price; Q=70-25=45
25=10+Q
Q=15(supply)
Hence, There is a shortage of 45-15=30.
b.) Now, Mayor George Bailey about water consumers, is considering a price ceiling that is 10% below monopoly price. Therefore, the price ceiling will be = (50- 5) = $ 45. And at this price ($45), demand quantity would be 25 units of output. Hence, the profit maximizing Mr. potter would not produce that amount because quantity supplied is more than quantity demanded.
c.) Now, George's uncle Billy tells that price ceiling is bad idea because it causes shortage. Yes, he is right in this case. As it has been observed above. further, shortage's size that price ceiling creates = (Quantity supplied at $45 - Quantity demanded at)= (35 - 25) = 10 units of output. This shortage is because of demand's lack.
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The quantity demanded is 20 units. [MR=MC; 70-2Q=10+Q; Q = 60 /3 = 20]. Shortage's size that price ceiling creates = 10 units of output [(Quantity supplied at $45 - Quantity demanded at 25)= (35 - 25)]. This shortage is because of demand's lack.
What quantity would be demanded at this new price?The equation for the demand, marginal revenue and marginal cost for the given problem are as follows:
Demand : p= 70-Q Marginal Revenue : MR = 70-2Q Marginal cost : MC = 10+Q
Profit is maximized at; MR=MC = 70-2Q=10+Q
Q = 60 /3 = 20
P = 70 - Q = 70 -20 = 50
10% below monopoly price=50(0.9)=45
D=70−Q=70−45=25
MC=10+25=35, MC is less than price
Surplus = Supply -demand = 35-25 =10
At P= 50% below monopoly price; Q=70-25=45
25=10+Q
Q=15(supply)
Hence, There is a shortage of 45-15=30.
b.) Mayor George Bailey is currently thinking about setting a price cap 10% below the monopoly price for water consumers. As a result, the price cap will be $ 45 = (50- 5) Additionally, the demand quantity would be 25 units of output at this price ($45). Therefore, Mr. Potter would not manufacture that much because there is a surplus of supply compared to demand.
What size shortage would the price ceiling create?Billy, George's uncle, now claims that a price cap is a bad idea since it results in shortages. Yes, in this instance, he is correct. like what was mentioned earlier In addition, the extent of the shortage caused by the price ceiling is calculated as follows: (Quantity supplied at $45 - Quantity required at)= (35 - 25) = 10 units of output. The lack of demand is what's causing this shortage.
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