all other things​ equal, and assuming that purchased both items​ before, what would you expect to happen to his purchases of ​(relative to ​) this​ year?

Answers

Answer 1

The law of demand suggests that because steaks are more expensive than salmon, they should be. David will make significantly fewer purchases. (Both items' dollar prices have increased, but this increase is relative and does not affect demand.)

The Law of Demand
One of the most fundamental ideas in economics is the law of demand. It explains how market economies distribute resources and set the prices of goods and services that we see in daily transactions by combining the law of supply. The law of demand states that the relationship between quantity purchased and price is inverse. In other words, the quantity demanded decreases as the price increases. Because of declining marginal utility, this happens. In other words, consumers utilize the initial units of an economic good they buy to fulfill their most pressing requirements first, and they use the subsequent units to fulfill progressively lower-valued goals.

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Related Questions

debt securities acquired by a corporation which are accounted for by recognizing unrealized holding gains or losses that are included as other comprehensive income and as a separate component of stockholders' equity are

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Debt securities acquired by a corporation which are accounted for by recognizing unrealized holding gains or losses and are included as other comprehensive income and as a separate component of stockholders' equity are available-for-sale debt securities.

Debt securities are financial assets that entitle their owners to a circulation of hobby payments. In contrast to fairness securities, debt securities require the borrower to pay off the predominant borrowed. The hobby fee for a debt security will rely on the perceived creditworthiness of the borrower.

What are the examples of debt security?

Examples of debt securities are bonds, convertible debt, business paper, promissory notes, and redeemable desired inventory. In each of those cases, the lender or investor is entitled to get hold of the overall quantity of the safety at some later date, or to sell it now on a secondary market.

What are debt securities used for?

Debt securities are precisely what they sound like: investable belongings used to raise debt for an entity. Person investors, institutional investors, and even governments can buy with the ability (but never the outright assure) of returning their predominant with interest.

What are the three forms of debt securities?

Not unusual styles of debt securities encompass corporate bonds, municipal bonds, and treasury bonds.

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will you now or in the future require sponsorship for employment visa status (e.g. h-1b visa status)? f1 student

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The answer is yes if you require the employer to start (or "sponsor") an immigrant or cooperate with their system in order to hire you now or in the future.

What does it mean to need sponsorship for a Visa?

The willingness of a company to provide access sponsorship for highly qualified individuals outside the United States is captured. Employers deal with a difficult procedure. They must demonstrate that they would need to staff their entrances with qualified American workers in order to sponsor a ticket.

Almost all students should choose "yes" when asked if they currently or in the future plan to apply for job visa sponsorship. Most international grads will look for H-1B and maybe other work visa sponsorship because their CPT or OPT expires.

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time to reach a financial goal you have $33,556.25 in a brokerage account, and you plan to deposit an additional $5,000 at the end of every future year until your account totals $220,000. you expect to earn 12% annually on the account. how many years will it take to reach your goal?

Answers

It will take 11 years time to reach a financial goal you have $33,556.25.

What is a present value and Future Value?

The amount of cash that must be invested in order to realize a given future objective is known as the present value. Future value is the amount of money that will grow over time if the initial investment is made. You must invest the present value in order to realize the future worth.

Given,

Present value(PV) = $33,556.25

Annuity = $5,000

Future Value(FV) = $220,000

Rate = 12%

Required to Calculate time =?

FV = PV*(1 + r)∧n + Annuity*(((1 +r)∧n-1)/r

220,000 = 33,556.25*(1 + 0.12)∧n + 5,000(((1 + 0.12)∧n-1/0.12

3.47855 = (1.12)∧n

Taking log on both sides,

log(3.47855) = log(1.12)∧n

N=0.541398/0.049218

N= 11 (approx)

Thus, it will take 11 years to reach the goal. In a brokerage account and you plan to deposit an additional $5,000 at the end of every future year until your account totals $220,000. you expect to earn 12% annually.

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what aspect of the control environment is affected by the company's decision to hire temporary workers?

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The commitment to competence aspect of the control environment is affected by the company's decision to hire temporary workers.

What is a temporary employee?

Temporary employees may be employed by you directly or via a staffing firm. They are employed at will or pursuant to a contract and receive hourly pay or, in some circumstances, a salary. Part-time, full-time, and seasonal temporary workers are all possible. For your business, temporary employees often put in less than 1,000 hours or one year.

Costs associated with employing permanent staff can be avoided by the business. The temporary company may have already trained them. They might provide the business with a fresh, outside perspective. As a temporary employee, you have the chance to assess several businesses across various industries to determine which one best fits your working preferences and long-term professional objectives.

Temp work provides flexibility. You can pick up new abilities. Your employment gaps may be filled with temporary labor. Permanent work may follow temporary employment.

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global competition, team-based projects, flattened management hierarchies, new communication technologies, and are the most significant trends in today's dynamic workplace. group of answer choices fewer written messages more homogeneous workforces expectations of around-the-clock availability stricter dress codes

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Three parts make up the competition: submitting initial ideas, qualifying teams submitting business plans, and a final presentation of the teams and concepts that stood out from the second stage.

Candidates and teams are asked to upload a brief, detailed, and documented description of their business idea for the first stage of the competition, which is handled online using a template (online submission form) that is available on the competition website. The main components of each first-stage proposal will be made available to the public on the platform so that potential partners and investors can interact with them. Each proposal will be evaluated on its originality, viability, and completeness as well as its relevance to the PROMETHEUS project's goals and the needs of the business community as expressed on the platform in order to determine if it advances to the second stage.

A detailed business plan that can result in the development of a business and is sufficient for possible financiers will be assembled and submitted by the proposals that advance to the second stage using a template that will be provided. According on the content of each business idea, mentors with the appropriate skills will be appointed to support the teams in the second round. Between mentors and team members, communication and relevant meetings will be conducted digitally. A team of assessors, made up of university professors, seasoned business executives, and public sector experts, will assess the proposals in the first two stages.

The top business proposals, chosen following the pertinent second stage review, will be presented at the competition's final event in front of a jury made up of illustrious representatives of the academic community and the business world in the third stage. The team and their ideas are briefly presented during the final presentation, which is typically live, and pertinent questions from the judges and audience are also addressed.

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upper-level managers are responsible for decisions regarding the direction and purpose of the organization.

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Upper-level managers are responsible for Long term decisions regarding the direction and purpose of the organization.

The primary function of the upper-level management team is to develop the mission, vision, and strategy for the entire organization by considering challenges and opportunities in the current business environment. Simply put, upper-level managers make long-term decisions regarding the direction and purpose of the organization.

Top-stage managers are accountable for controlling and overseeing the whole organization. middle-level managers are accountable for executing organizational plans which observe the company's guidelines. They act as a middleman between top-degree and coffee-stage management. pinnacle managers are accountable for the overall course and operations of an agency. mainly, they're chargeable for setting organizational dreams, defining techniques for attaining them, monitoring and enforcing the outside environment, and selecting that affect the entire enterprise.

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identify specific asset, liability, revenue, and expense accounts that cookie creations will likely use to record its business transactions.

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Asset: unique properties that Cookie Creations will use are debts receivables and current assets. money owed receivable will get up whilst human beings have not but paid for the organization sessions and man or woman training. Cookie Creations may even have a few fixed properties within the form of equipment like mixers, ovens, and so on. with a view to being used to make cookies.

Liability: The enterprise could have to shop for substances like cream, dough, chocolate, etc. suppliers usually increase credit and so the enterprise may have modern liabilities in the shape of bills payable. The commercial enterprise may take financial institution loans for financing the commercial enterprise and this can be lengthy-term debt.

Revenue:  Revenue can be generated through fees and charges charged for institution periods and man or woman lesions.

Expences: There might be the value of maintaining the periods, trendy and administrative expenses, and interest expenses on a financial institution loan if any. Depreciation might be charged on constant properties like ovens, mixers, and many others.

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a company can only be concerned about its responsibilities once it has met its economic and legal responsibilities.

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A company can only be concerned about its ethical responsibilities once it has met its economic and legal responsibilities. Option E

This is further explained below.

What are legal responsibilities?

Generally, The term "legal responsibility" refers to the imposition of specific responsibilities onto a person, such as the duty to care for or provide for another person, in addition to the accountability for personal commitments that may be provided by a court order or a power of attorney.

In general, the term "legal responsibility" refers to the imposition of certain responsibilities onto a person.

One example of economically responsible behavior is when a corporation makes all of its financial decisions while maintaining its dedication to improving its performance in the aforementioned domains.

The ultimate goal is not just to maximize profits but also to have a positive impact on the people, society, and ecology of the whole planet. This is the ultimate aim.

In conclusion, After it has satisfied its financial and legal obligations, a firm may next turn its attention to the ethical duties that are its responsibility. Alternative E

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complete question

A company can only be concerned about its _____ responsibilities once it has met its economic and legal responsibilities.

A. stakeholder

B. societal

C. cultural

D. corporate

E. ethical

a good without any close substitutes is likely to have relativelyelastic demand, since consumers cannot easily switch to a substitute good if the price of the good rises.

Answers

A good without any close substitutes is likely to have relatively elastic demand, Since consumers cannot readily convert to a substitute item if the price of the original good increases, a good without any near substitutes is likely to have relatively Inelastic demand.

Inelastic Demand:

When a buyer's desire for a product does not fluctuate as much as a product's price change, this is known as inelastic demand. Demand is said to be inelastic when the price rises by 20% yet the decline in demand is only 1%. This problem frequently arises with common household goods and services. People will continue to buy roughly the same amount of goods or services after a price increase since their needs remain the same. Similar circumstances apply when the price is reduced; the demand for the product will not rise significantly as a result of consumers' limited need for it (s).

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WHAT DISADVANTAGES ARE THERE TO BEING A SOLE TRADER IN CONTRAST TO A PARTNERSHIP?

Answers

Explanation:

freedom

you can make quick dissions alone unlike partnership.

easy to run

requires small capital to start

you enjoy all the profits alone

Savings: $2,500 discretionary spending: $450 per month option a to buy has a total cost of 22,780 dollars, up-front cost of 2,500 dollars, monthly payment of 338 dollars for 60 months, and no mileage restriction. option b to lease has a total cost of 12,169 dollars, up-front cost of 3,925 dollars, monthly payment of 229 dollars for 36 months, and mileage restriction of 10,000 per year. compare the costs of buying and leasing a new vehicle. what are the advantages of buying the car? check all that apply. i have enough saved for the down payment. there are no mileage restrictions. the price of the car is less. the monthly payment is less. i will own the car in five years.

Answers

Answer: A,B,E

Explanation: EDGE

Answer: a,b,e

Explanation: edu

oct 8, 2022

The major department head who is appointed by the president to deal with foreign countries is the.

Answers

The Secretary of State is that the major department who is appointed by the president to pander to foreign countries.

The Secretary of State, appointed by the President with the recommendation and consent of the Senate, is that the President’s chief foreign affairs adviser. The Secretary carries out the President’s foreign policies through the State Department and therefore the office of the us. Created in 1789 by the Congress because the successor to the Department of Foreign Affairs, the Department of State is that the senior federal department of the U.S. Government. The Secretary of State’s duties referring to foreign affairs haven't changed significantly since then, but they need become way more complex as international commitments multiplied.

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to celebrate earth day, the employees of a company plan to reduce their carbon footprint in the workplace. identify the changes they can make to achieve their plan.

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They can make the following changes:

Stop buying the  water in plastic. Get a reusable water bottle and keep it filled at all times.

Incorporate walking or biking to some of the regular short-trip destinations. In most instances, employees can walk a mile in less than 20 minutes.

Turn off lights and unplug devices when no one is  using them in the workplace.

Thermostat must be set  to 78 in summer and 67 in winter. And turn-off the heat and AC when employee is not in the office cabin.

Use alternative transportation  such as bus, train, carpool, or bike  to get to work one day per week.

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which section of the policy analysis provides the overall content for the analysis by identifying key stakeholders and the factors that must be considered when analyzing the problem?

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The Landscape section of the policy analysis provides the overall content for the analysis by identifying key stakeholders and the factors that must be considered when analyzing the problem.

What is the Landscape section?

The landscape provides the overall context of the analysis by identifying key stakeholders and the issues that must be considered when analyzing the problem Which stakeholders must be included depends on the issue at hand and the phrasing of the problem statement. Identifying key stakeholders: the policy analysis discussion focused on one.

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Elaborate on the meaning of the vision and mission statement of a business ​

Answers

The answer should be multitasking

a high uncertainty avoidance ranking indicates that the country has a high tolerance for uncertainty and ambiguity.

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A high uncertainty avoidance ranking indicates that u . s. a . has an excessive tolerance for uncertainty and ambiguity and a low tolerance for uncertainty and ambiguity.

Uncertainty refers to epistemic conditions related to imperfect or unknown statistics. It applies to predictions of destiny activities, to bodily measurements which can be already made, or to the unknown. Uncertainty arises in part observable or stochastic environments, as well as due to lack of expertise, indolence, or both.

Uncertainty is described as doubt. whilst you sense as in case you aren't positive in case you need to take a new process or not, this is an instance of uncertainty. while the economic system is going awful and causing all of us to fear about what's going to show up next, this is an example of uncertainty. Uncertainty is regularly targeted on issues approximately the destiny and all of the terrible matters you can assume occurring. it can leave you feeling hopeless and depressed approximately the times ahead, exaggerate the scope of the troubles you face, and even paralyze you from taking motion to overcome trouble.

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geppetto and lewis agree to trade at a rate of 3 puzzles for each puppet. with those terms of trade, who is most likely to be the supplier of puzzles? who is most likely to be the supplier of puppets

Answers

Puzzles are most likely supplied by Geppetto, while puppets are most likely supplied by Lewis. Geppetto is most likely the source of puzzles.

This is further explained below.

What are puzzles?

Generally, A puzzle is any activity (such as a game, a problem, or a toy) that challenges a person's intelligence or inventiveness.

When solving a puzzle, it is required of the solver to fit the parts together in a manner that is consistent with logic in order to arrive at the proper or enjoyable solution to the challenge.

In conclusion, Geppetto is most likely the one who provides the puzzles, whilst Lewis is most likely the one who provides the puppets. It is most likely Geppetto who is responsible for the riddles.

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kane inc. owns 30% of woodhouse co. and applies the equity method. during the current year, kane bought inventory costing $71,500 and then sold it to woodhouse for $130,000. at year-end, only $30,000 of merchandise was still being held by woodhouse. what amount of intra-entity gross profit must be deferred by kane?

Answers

If kane inc. owns 30% of woodhouse co. and applies the equity method. during the current year, kane bought inventory costing $71,500 and then sold it to woodhouse for $130,000. The  amount of intra-entity gross profit that must be deferred by kane is: $4,050.

Intra-entity gross profit

Using this formula

Intra-entity gross profit=Merchandise×[(Selling price-Cost of inventory)/Selling price]×Rate

Intra-entity gross profit=30,000×[(130,000-71,500)/130,000]×.30

Intra-entity gross profit=30,000×0.45×0.30

Intra-entity gross profit=$4,050

Therefore If kane inc. owns 30% of woodhouse co. and applies the equity method. during the current year, kane bought inventory costing $71,500 and then sold it to woodhouse for $130,000. The  amount of intra-entity gross profit that must be deferred by kane is: $4,050.

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in the sales comparison method, quantitative adjustments are based on dollars, while qualitative adjustments are based on percentages.

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To account for the variations between the topic and the comparable sales, quantitative adjustments are either percentage or monetary adjustments. The appraiser must rank the similar sales in terms of superiority/inferiority to the subject in order to make qualitative changes.

What are quantitative adjustments?

Quantitative adjustments include percentage and/or monetary adjustments to account for differences between the property in question and its peers. This method of using quantitative adjustment has advantages and disadvantages. Quantitative adjustments are desirable because they can provide measurable and quantifiable adjustments. For this reason, it is considered a far more objective adjustment than a qualitative adjustment. This type of analysis/adjustment is mostly considered more accurate and reliable due to the scientific nature of the quantitative analysis. At the same time, finding the data necessary to validate a quantitative adjustment can be very difficult or even impossible. Let's explore some methods used in quantitative fitting.

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at a sales volume of 55,000 units, a certain company’s total fixed costs are $55,000 and total variable cost are $75,000. the relevant range of 50,000 and 80,000 units. if the company was to sell 59,000 units, the total expected cost would be: 135,240

Answers

If the company was to sell 59,000 units, the total expected cost would be $135,240 while total fixed costs are $55,000  

What is total fixed costs?

An expense that a business must incur and usually relates to time is referred to as a fixed cost. Rent for office space and/or manufacturing facilities that a business pays on a monthly basis is an excellent illustration of a fixed expense. Unless both landlords and tenants agree to re-negotiate a lease agreement, this is normally a contractually agreed-upon period that is fixed.

In the case of some rental properties, predetermined incremental annual rent increases may be present, where the lease calls for rent increases of a specific percentage from one year to the next. These price increases are, however, obvious and factored into the cost calculation.

Variable cost per unit = Total variable cost ÷ Units = $ 75000÷ 55,000 = $1.36 per unit

Total cost = Fixed cost + (Variable cost per unit × Units)

                 = $55,000 + ($1.36 per unit  × 59,000 units)

                 = $135240

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Correct question

At a sales volume of 55,000 units, a certain company's total fixed costs are $55,000 and total variable costs are $75,000. The relevant range of 50,000 and 80,000 units.

If the company was to sell 59,000 units, the total expected cost would be:

A: 135,240

B: 160,160

C: 145,750

D: 150,470

individually identify what you consider to be the greatest achievements accomplished by mankind in the last five decades. now share your list with three to five other students in the class, and come up with an expanded list. review these accomplishments in terms of the definition of a project. what does your review suggest about the importance of project management?

Answers

The greatest achievements accomplished by mankind in the last five decades are- Mass production of personal computers: With the support of Steve Jobs' Apple and Bill Gates' Microsoft, personal computers became widely used in homes and offices in the early and middle 1990s, revolutionizing society and boosting productivity.

Internet: Although it wasn't created in the last fifty years, the internet started to become widely used in the late 1990s. Computers (and, in modern times, cellphones) wouldn't be as capable and significant without the internet. The way we communicate and conduct business has both altered as a result of the internet.

Project management refers to the process of breaking a project down into tasks and distributing those assignments to other team members. The achievement of these minor objectives results in the gradual realization of the main objective. that is, The Project. You would have trouble finishing the project on time without good project management. Making the team accountable would be challenging, and maintaining team unity would be even more difficult.

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thompson engine company manufactures and sells diesel engines for use in small farming equipment. for its 2017 budget,

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Thompson Engine corporation manufactures and sells diesel engines to be used in small farming devices. For its 2017 finances, Thompson Engine enterprise estimates the subsequent:

      The selling fee                                               $ 7,000

      Variable cost consistent with engine           $ 2,000

      Annual constant charges                              $5,560,000

      internet earnings                                            $ 900,000

      earnings tax rate                                             40%

The primary-quarter income announcement, as of March 31, said that income had been not meeting expectancies. during the primary area, the simplest three hundred units had been sold at the modern price of $7,000. The earnings statement confirmed that variable and stuck charges were as planned, which intended that the 2017 annual net earnings projection might not be met except if management took movement. A controlled committee become formed and presented the following together one of a kind alternatives to the president:

Lessen the promotion price by 15%. The sales company forecasts that at this drastically reduced charge, 1,400 gadgets can be sold for the duration of the remainder of the 12 months. overall fixed prices and variable prices in step with units will live as budgeted.

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belstone, inc. is a merchandiser of stone ornaments. it sold​ 15,000 units during the year. the company has provided the following​ information:

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The total of all indirect costs incurred during the manufacturing of a product is known as manufacturing overhead (MOH) cost. Along with the expenses of direct materials and direct labor, it is included in the price of the finished product. The depreciation of equipment, wages paid to factory workers, and electricity used to operate the equipment are typically included in manufacturing overhead costs.

A manufacturer's balance sheet, cost of products income statement, and cost of finished goods in inventory should all reflect production overhead in accordance with generally accepted accounting principles (GAAP).

In order to predict the monthly demand for its product, a producer of printed circuit boards utilizes exponential smoothing with trend. The corporation wants to anticipate sales for January at the end of December. 200 extra boards were estimated to have been sold each month through the month of November. Around 1000 copies have been sold monthly on average. In December, there was a need for 1100 units. The business makes use of = 0.20 and = 0.10. Make a forecast for January that includes trends.

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the american institute of certified public accountants has the primary authority to establish accounting standards.

Answers

False, the American institute of certified public accountants does not have the primary authority to establish accounting standards.

The AICPA is commonly accepted professional and technical standards for CPAs in multiple areas. Until the 1970 s, the AICPA holds  a virtual monopoly in this field. in the 1970 s, however, it was  transferred its responsibility for setting generally accepted accounting principles(GAAP) to the freshly formed Financial Accounting Standards Board(FASB).

What is the American institute of certified public accountants(AICPA)?

The American Institute of Certified Public Accountants (AICPA) is a non-profit professional organization recognising  certified public accountants (CPA)in the United States.

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A decrease in the demand for soft drinks due to changes in consumer tastes, accompanied by an increase in the supply of soft drinks as a result of reductions in input prices, will result in.

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A decrease in soft drink demand due to shifts in consumer tastes, combined with an increase in soft drink supply due to lower input prices, will lead to a decrease in soft drink equilibrium price; the equilibrium quantity might very well increase or decrease.

The equilibrium price is the only price at which consumers' and producers' plans coincide—that is, the amount consumers desire to purchase of the good or service, quantity demanded, equals the number producers want to sell, quantity supplied. The equilibrium quantity is the name given to this common quantity. In any other cost, the quantity demanded doesn't really equal the quantity supplied, indicating that the market is not in equilibrium.

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this flight is operated by a partner airline united seat selection and changes are not available for this flight at this time. you'll be assigned a seat prior to boarding. for additional information, visit the operating airline's website.

Answers

I am unable to choose seats on the United website. It informs me "On this flight, there are no available advance seat assignments on united.com.

Partner Airline
An airline is a business that offers passenger and cargo air transportation services. Airlines utilise planes to provide these services, and they may join forces with other airlines to fly the same flight under a codeshare arrangement. Typically, an air operating certificate or licence issued by a governmental aviation organisation serves as recognition for airline firms. Airlines may operate on a scheduled or a charter basis. The German airship firm DELAG, established on November 16, 1909, was the first airline. The Netherlands' KLM (1919), Colombia's Avianca (1919), Australia's Qantas (1920), and the Czech Republic's Czech Carriers (1920) are the four oldest non-airship airlines still in operation (1923).

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the city of springvale levies a tax on the value of real property located within its city limits. the tax equals 2 percent of the property’s assessed value up to $500,000 plus 4 percent of the value in excess of $500,000.

Answers

Tax increments are levied on the difference between the TID's base value and current value by all abutting taxing jurisdictions.

$415,00 x 2% = $8,300 in property tax.

$19,000 ($500,000 2% + $225,000 4%) is the property tax.

Compute the tax on real property valued at $415,000.

A tax is a mandatory financial charge or other sort of levy that is placed on a taxpayer by a government agency in order to pay for various public expenditures, taxes, and government spending in general. Value increment is the difference between the base value and the current value of the Tax Incremental District (TID). The amount of the property worth determines the tax increment.

Tax increments are levied on the difference between the TID's base value and current value by all abutting taxing jurisdictions. The taxes are paid to the municipality that manages the TID, and they must be used to cover the costs of the authorized project.

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establishing a positive relationship with all key stakeholders early in the project helps to create a desire among those stakeholders to support the project, and builds the communications foundation for the project. group of answer choices true false

Answers

Establishing a positive relationship with all key stakeholders early in the project helps to create a desire among those stakeholders to support the project, and builds the communications foundation for the project. This statement is True.

What does stakeholder mean?

A stakeholder is a party involved in a business that affects or is affected by the business. The main stakeholders of a typical company are investors, employees, customers and suppliers.

Who are the company's stakeholders?

A stakeholder is an individual, group or organization directly involved in or indirectly affected by a project, product, service or business. As such, stakeholders also influence why and how companies do business.

What is the role of stakeholders?

Stakeholders help complete a company's project or organization by providing valuable support, insight, and resources. Understanding the roles of stakeholders is critical to project success.

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the four major types of transactions that affect equity in a business are , , owner's withdrawals, and owner's investments. note: enter one word for each blank.

Answers

The four major types of transactions that affect equity in a business are revenues, expenses, owner's withdrawals, and owner's investments.

What is an equity account?

An equity account can be defined as a financial portrayal of ownership interests in a business firm, which may come from the business's earnings or payments made by stockholders and owners such as:

Preferred stockContributed surplusAdditional paid-in capitalRetained earningsTreasury stockCommon stock

In Business management, there are four (4) major types of transactions that affect equity in a business and these include the following:

RevenuesExpensesOwner's withdrawalsOwner's investments.

In conclusion, all financial transactions such as revenue and owner's investment, that increase equity also increases the profits and capital.

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deltra was willing to purchase a dozen cookies for $80 that deirdre was willing to sell for anything more than $42. if they agreed on a price of $46, how much total value was created in this exchange?

Answers

The total value created in this exchange is $38.

What is the total value created?

The total value created is the sum of the consumer surplus and the producer surplus.

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

$80 - $46 = $34

Producer surplus is the difference between the price of a good and the least price the seller is willing to sell the product

Producer surplus = price – least price the seller is willing to accept

$46 - $42 = $4

Total surplus = consumer surplus + produce surplus

$4 + $34 = $38

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