The market supply of cigarettes is shown in the table below.

Supply of Cigarettes
Quantity of Cigarettes Supplied (packs)
Price (dollars) Pre-Tax Post-Tax
$1.00 100
1.50 150
2.00 200
2.50 250
3.00 300
Imagine that, in order to discourage people from smoking, the government decides to place an excise tax on every pack of cigarettes sold directly affecting suppliers. As a result of the tax, the supply of cigarettes decreases by 150 packs of cigarettes at each price.

Graph the pre-tax market supply curve and graph the after-tax market supply curve.

2. Managers at a local home improvement store see that new home sales in their area have increased. They order more refrigerators for their store. They likely do this because they assume that:

a. new homes and refrigerators are complements

b. new homes and refrigerators are substitutes

c. refrigerators are inferior goods

d. refrigerators are normal goods

Answer:

As the further process makes an increase in the revenue of the product the company should continue the processing to achieve an additional 3,000 revenue from product C regardless of the cost associate at splitoff point.

It will increase operating income by 3,000

Explanation:

With the given information we can derive the following using a differential analysis:

Differential revenue:

71,000 - 53,000 = 18,000

Differential cost:   15,000 (cost of further process)

Differential gain:    3,000

Answer:

To enforce this promise we need to analyse whether there has been any agreement or contract between Sarah and Odessa and whether the same can be enforced.

Explanation:

In Sarah's case, her offer to gratuitously pay the neighbor for assisting in the house fire is not an enforceable contract. When the neighbor rushed to help in the fire, the offer to pay $1,000 had not yet been extended. When Sarah did extend the offer to pay $1,000, there was no consideration exchanged between both parties. The consideration, putting out the fire, had already occurred without the offer or acceptance of a contract.

Consider an alternate scenario. Sarah's house was on fire, and she could not wait for the fire department. She ran to her neighbor's house, begged for help, and offered $1,000 in exchange for neighbor's assistance. After hearing Sarah's plea, the neighbor agrees to assist in extinguishing the fire. This constitutes a contract; an offer, consideration, and acceptance.

Final answer:

Sarah's promise to pay Odessa $1,000 for extinguishing a fire is not enforceable since it is a gratuitous promise without consideration. Odessa did not provide anything of value after the promise was made, and the information given does not suggest detrimental reliance, which could have made promissory estoppel applicable.

Explanation:

Under the principle of contract law, a promise is generally not enforceable without consideration, which means that each party must contribute something of value or undertake an obligation they are not otherwise required to. In the scenario presented with Sarah and Odessa, Sarah's promise to pay $1,000 to her neighbor Odessa for extinguishing a fire is a classic example of what is known as a gratuitous promise. Since Odessa had already extinguished the fire, she did not provide any consideration after the fact, making the promise akin to a gift rather than an enforceable contract.

A different outcome might be possible if Odessa extinguished the fire in reliance on the promise and this reliance was to Odessa's detriment, potentially giving rise to an argument based on promissory estoppel. However, based on the information given, which does not suggest such detrimental reliance, the promise is not enforceable and is purely gratuitous, meaning Odessa cannot legally enforce Sarah's promise to pay the $1,000.

Answer:

70.83%      

Explanation:

Given that,

Company's assets = $1,200

Equity = $350

Dept = Reported assets - Company's equity

        = $1,200 - $350

        = $850

Dept ratio = (Debt ÷ Total assets) × 100

                 = ($850 ÷ $1,200) × 100      

                 = 0.7083 × 100

                 = 70.83%      

Therefore, the Dept ratio of Converse Florists​ & Co. is 70.83%.

Answer:

The how to produce question

Explanation:

When making a choice of how to produce goods and services, there are two considerations. Will method of production be labor based or capital intensive?

For labor based production it makes use of more labor and less capital of machinery. This is exemplified by the teller making payments.

Capital intensive means of production uses more of capital means or machinery, for example where ATM machines are used to pay money.

Answer:

2. a demand curve

Explanation:

Answer:

Y = $4,173 + ($5.13)X

Explanation:

A fixed monthly operating cost of $4,173 is a monthly cost that will not change no matter the number or unit of t-shirt produced, while $5.13 is the variable costs of making each t-shirt. This can be presented in a linear equation as follows:

Y = a + bX .............................. (1)

Where,

Y = Total monthly cost of producing shirts

a = fixed cost = $4,173

b = variable cost of each shirt = $5.13

X = number of shirts produced

Using the values already given, equation (1) can be rewritten as follows:

Y = $4,173 + ($5.13)X .............................. (2)

Equation (2) is the required linear equation.

Final answer:

Supply is  (B) the amount of some good or service a producer is willing to supply at each price,

Explanation:

Supply concept is essential to understanding market dynamics and is closely related to demand. The supply curve shows the relationship between the price of a good or service and the amount a producer is willing to supply. When the price of a product rises, producers are generally willing to supply more, indicating a positive relationship between price and quantity supplied. The equilibrium price is established when the quantity demanded by consumers equals the quantity supplied by producers.

If the quantity supplied surpasses the quantity demanded, it results in excess supply, while the opposite scenario results in excess demand. A supply schedule is a table that illustrates the quantity of goods a producer is willing to supply at various prices, keeping other factors constant. If the price of the good changes, there is a movement along the supply curve, referred to as a change in the quantity supplied.

Answer:

c. $375 of interest income and $50 short term capital gain

Explanation:

The question is to determine the income and the capital gains to be reported by Harold on his 10 year bond.

Capital Gains represent are gains or loss can either be generated as a result of selling your bond fund before its maturity or when the bond is held to maturity.

Furthermore, the rule specifies that to treat the capital gains on the bond as long term it must be held for at least a year.

In this question:

The bond was purchased on the 1st of July, 2016 at $10,000

The bond was sold April 1, 2017 at $10,050. Since, the bond was only held for 274 days. It will only get short term capital gain

Short term capital gain = $10,050- 10,000 = $50

Also, The interest on bond income = (10,000 x 5%) x ( 274/ 365 days)  

= 500 x 0.75

=$375 Interest Income

Answer:

a.  Human capital return on investment

Explanation:

Human capital return on investment  -

It helps to determine the profit return of the company or organisation on the per unit expenditure on the employees , is referred to as the Human capital return on investment  .

It is basically the interconnection between the profit of the company and the cost on the workforce .

hence , from the given scenario of the question,

The correct option is a.  Human capital return on investment  .

Answer: d). Will not win a claim of defense of others.

Explanation: Defense of Another is the legal right of a person to protect a third party with reasonable force against another person who is threatening to inflict force upon the third party.

A claim of defense of others can only be considered when there is a substantial evidence that inflict of harm was threatened. In the case of Mike Tyson, he is a professional boxer of which there could never have been any fear of inflicting of harm from either a 6th or 7th grader.

The correct answer is (d)  Mike Tyson would not win a claim of defense of others because his action of pinning and injuring Suzy by crushing her ribs is considered excessive and disproportionate force, which is not reasonable when defending others, especially children.

Explanation:

In this scenario, Mike Tyson, a professional boxer, intervenes in a fight between two young girls, Mary and Suzy. will not win a claim of defense of others. In legal terms, the claim of self-defense or defense of others requires the defender to use a reasonable amount of force about the threat being presented. Considering the significant difference in physical size and strength between Mike Tyson and the girls, as well as that one girl, Suzy, is pinned and sustained serious injuries, Tyson's use of force by crushing her ribs is excessively disproportional to the threat posed by the fight between the children. Thus, Tyson's actions exceed what is typically considered reasonable force to defend others, particularly when children are involved, and it is unlikely that a claim of defense of others would be successful in a court of law.

Answer:

1) decrease of equity:

2) increase of equity

3) increase of equity

Explanation:

1) the treasury stock decrase the equity outstanding

5,000 shares x $45 = $225,000

2) when we sale the sales our equity increase:

2,000 x 49 = 98,000

cost 2,000 x 45 = 90,000

we reocgnize an additional paid-in treasury stock for 8,000

as we cannot recognize a gain from selling our own shares

3) 500 x 40 = 20,000

cost 500 x 45 = 22,500

we decrease the addtional paid-in for 2,500 as we sale at "loss"

The treasury transactions include a purchase of shares, which reduces cash and increases treasury stock, and sales of shares, which increase cash and may affect additional paid-in capital and/or retained earnings depending on the sale price relative to the cost.

To determine the effect of treasury stock transactions on a company's financial statements using the cost method, we need to analyze each of the given transactions separately.

Answer:

e. Tips and gratuities

Explanation:

You must include in your gross income all wages and benefits, salaries and tips received in respect of performance services as an employee. Once you get tips, the tip money you get will be payed by you for Medicare and social security. For the IRS, tips is just like wages to become a taxable income.

Tips and gratuities are not excluded from gross income and are considered taxable income, unlike the other mentioned amounts such as veterans' benefits, child support payments, gifts, and scholarship grants for tuition which are typically not taxed.

The question asks which of the following amounts are excluded from gross income, except:

All of the mentioned amounts are generally excluded from gross income except for tips and gratuities, which are considered taxable income and must be reported. Tips and gratuities are commonly received by employees in certain industries like hospitality and service sectors and are subject to income tax; therefore, they are not excluded from gross income.

Answer:

Diminishing returns set in when the firm hires four laborer

Explanation:

given data

one laborer produces =  6 unit

two laborer produces = 14 unit

three laborer produces = 22 unit

four laborer produces = 24 unit

five laborer produces = 25 unit

solution

we know that in the Diminishing returns it is refer to that fact when once it hit an certain point than each of the additional units give it less and the less returns for money

so here when one laborer 6 unit produce so when two it is more 8 more and when three than 8 but when four labor than it is 2 more production only  

so here Diminishing returns set in when the firm hires four laborer

Final answer:

Diminishing marginal productivity begins after the hiring of the third laborer, as the fourth laborer adds significantly less output than the previous one, indicating a decrease in additional output per worker.

Explanation:

The subject in question involves the concept of diminishing marginal productivity, which falls under the realm of economics, a subfield in business education. This concept states that there is a general rule that as a firm employs more labor, the amount of additional output produced by each extra worker eventually starts to decline.

When analyzing the production information provided, we need to compare the additional output (marginal product) each worker provides to the total output (total product). Diminishing returns set in when the additional output gained from hiring one more laborer is less than the marginal product of the laborer hired before them.

In this case, one laborer produces 6 units of output, while two laborers produce 14 units, so the second laborer's marginal product is 8 units (14 units - 6 units). The third laborer's marginal product is 8 units as well (22 units - 14 units). However, when the fourth laborer is hired, the total output increases to only 24 units, so the marginal product of the fourth laborer is 2 units (24 units - 22 units), indicating a significant decrease. Thus, the diminishing marginal productivity kicks in after the third laborer is hired.

The reasoning behind this is that in the short run, labor is the only variable factor, and each additional worker contributes less to the total output due to the fixed capital. This situation often leads to workers performing less essential tasks, like stocking shelves or answering phones, hence causing diminishing returns.

Answer:

D. All of the above

Explanation:

To determine if Sharon Jones owes taxes or will receive a refund for 2019, her gross income is adjusted by deducting the deductions for AGI and her itemized deductions. The final tax liability is then compared with her withholdings to ascertain the outcome. Without exact tax rates, a specific amount cannot be given, but this provides the method for calculation.

To determine whether Sharon Jones has a tax due or a refund for the tax year 2019, we must first calculate her taxable income and then apply the appropriate tax rates and credits. We start with her gross income of $159,800 and subtract the deductions for AGI ($5,500) and her itemized deductions ($14,000), since the question indicates she itemizes her deductions rather than taking the standard deduction. It's important to note that without the specific tax brackets and rates for 2019, an exact tax liability cannot be calculated in this response. However, the method involves subtracting deductions from the gross income to find the taxable income, then applying the tax rates to this amount, subtracting tax credits, and finally comparing the tax liability with the amount withheld ($22,000) to determine if a refund is due or additional tax is owed.

The general formula to estimate tax owed or refund is:

Taxable Income = Gross Income - Deductions for AGI - Itemized (or Standard) Deductions

Then, calculate the tax on this taxable income, subtract the credits, and finally compare the result with the amount withheld. If the withholding is more than the calculated tax after credits, Sharon would receive a refund. If the withholding is less, she would owe additional tax.

Answer:

304,100

Explanation:

The amount in the ending work in process inventory of the Assembly Department is a is the result of the opening or beginning work in progress of the department added to the units transferred from a prior department less the units transferred to the next processing department.

As such, let the units transferred to the next processing department be r,given that the Assembly Department started the month with 24,100 units in its beginning work in process inventory, an additional 309,100 units were transferred in from the prior department during the month to begin processing in the Assembly Department and there were 29,100 units in the ending work in process inventory of the Assembly Department

24,100 + 309,100 - r = 29,100

r = 24,100 + 309,100 - 29,100

r = 304,100 units

The number of units transferred to the next processing department during the month is 304,100.

The number of units transferred to the next processing department during the month is 304,100 units, calculated by subtracting the ending work in process inventory from the total units accounted for in the Assembly Department.

The student's question involves calculating the number of units transferred to the next processing department during the month in the context of an Assembly Department's production process. To find this number, you'll need to account for the units that were started and completed during the month. The calculation is as follows: Begin with the total number of units that entered the assembly process (both the beginning inventory and those transferred in), then subtract the number of units in ending inventory to determine the units that were completed and transferred to the next department.

To perform the calculation: The beginning work in process inventory was 24,100 units, and an additional 309,100 units were transferred in. Thus, the total units to account for during the month were 24,100 + 309,100 = 333,200 units. The ending work in process inventory was 29,100 units. Therefore, the number of units transferred to the next department is the total units accounted for minus the ending inventory, which equals 333,200 - 29,100 = 304,100 units.

Answer:

The correct answer is letter "C": Partnership.

Explanation:

A Partnership is an organization where two or more owners operate a business. They share the profits in proportion to their percentage partnership interest. There are two types of partnerships: General Partnerships (unlimited liability) and Limited partnerships (liability proportional to the percentage contribution of the partnership).

Answer:

A: The best alternative = Build Large Wing with $32500 EMV

B: The best alternative = Build small wing with $13000 EMV

C: EVPI = $47000

Note: Solutions are provided in the pictures.

Explanation:

Formula to calculate EMV = (Payoff of 1st state of nature) * (Probability of 1st state of nature)  + (Payoff of 2nd state of nature) * (Probability of 2nd state of nature)

Formula to calculate EVPI = EVwPI - Max EMV

A) Solution is in the attached image with (Table 1) mentioned on it.

B) Solution is in the attached image with (Table 2) mentioned on it.

C) Solution is in the attached image with (Table 3) mentioned on it.

The best alternative for Lowell Hospital is to build a large wing, as it has the highest expected monetary value (EMV). Even when considering the likelihood of growth and remaining the same, the decision remains to build a large wing. The expected value of perfect information (EVPI) is $24,000.

The decision on whether to build a large wing, small wing, or no wing at all at Lowell Hospital depends on the future population growth of Lowell. Assuming each state of nature has the same likelihood, we can calculate the expected monetary value (EMV) for each decision. If the population continues to grow, the EMV for a large wing is $150,000 and for a small wing is $100,000. If the population remains the same, the EMV for a large wing is a loss of $85,000 and for a small wing is a loss of $45,000. Based on these calculations, the best alternative is to build a large wing, as it has the highest EMV.

If we consider the likelihood of growth being 0.4 and remaining the same being 0.6, and the decision criterion is expected monetary value, the decision would still be to build a large wing. The EMV for a large wing in this case is calculated as (0.4 * $150,000) + (0.6 * -$85,000) = $46,000. The EMV for a small wing is (0.4 * $100,000) + (0.6 * -$45,000) = $22,000. Therefore, the decision should still be to build a large wing.

The expected value of perfect information (EVPI) is the maximum EMV minus the EMV without perfect information. In this case, the maximum EMV is $46,000 (for building a large wing assuming the growth likelihood is 0.4). Without perfect information, the EMV for a large wing is $46,000 and the EMV for a small wing is $22,000. Therefore, the EVPI is $46,000 - $22,000 = $24,000.

Answer:

d. First Quarter Sales exceed projections.

Explanation:

The message from the vice president sales should be formal and concise. It should convey the content of mail to the reader so that personnel that are reading it will have a summarised idea of what the mail is all about.

First Quarter Sales exceed projections - expresses this well. The content of the mail is the first quarter sales details and the fact that the company exceeded projections is also stated.

The other options Good News, FYI, and Sales Figures does not convey the content of the mail effectively.

The most effective subject line for a good-news message about first-quarter sales would be 'First Quarter Sales exceed projections'. This subject line is informative, attention-grabbing, and hints at the content of the message.

The best subject line for your message would be 'First Quarter Sales exceed projections'. This option not only brings out the good news but also provides specific details about what the good news is. It captures the reader's attention immediately and induces them to read further to get more details of this positive news. For example, how much did the sales exceed the projections by, what contributed to this significant achievement, etc. This subject line gives direct information about the first quarter sales and that they have been better than expected, encouraging the reader to find out more about this success.

https://brainly.com/question/32963112

Answer:

Explanation:

1. determine are the total dividend and the per-share dividends declared on each class of stock for each of the six years as follow:

Particulars  Preferred Dividends Common Dividends

Year Total Dividends Total Per Share Total Per Share

Year 1  $80,000         80000    0.32           0            0

Year 2  $90,000                90000    0.36           0            0

Year 3  $150,000        130000    0.52         20000    0.04

Year 4  $150,000        100000     0.4         50000     0.1

Year 5  $160,000        100000     0.4         60000     0.12

Year 6  $180,000        100000     0.4         80000     0.16

Total (a)  810000                600000     2.4         210000     0.42

Average (a/6 years)               0.4    0.07

2. Average annual dividend for preferred share is $0.40 per share and average annual dividend for common share is $0.07 per share.

3. The average annual percentage return on initial shareholders for preferred shareholder and common shareholders are 0.4% ($0.07/$17.50 x 100) and 1.6% ( $0.40/$25 x 100).

Answer:

D. Order the parties to arbitrate

Explanation:

Under an arbitration agreement, the parties to such a contract mutually agree to settling future disputes outside court.

Like every contract, such a contract is legally binding and the terms cannot be revoked by one of the parties later. The parties are bound by arbitration in such cases, as is mutually agreed initially.

As per the facts of the case, such an arbitration agreement has been entered into by Jan and Kyle, wherein it was mutually agreed to settle outside court, in the event of a dispute. When the said dispute arose, Jan filed a suit against Kyle.

In such a scenario, the court will likely D. Order the parties to arbitrate.

Answer:

b. He is retiring, so he no longer has a trade-off of missing practice or a game

Explanation:

First thing to establish is that the question is about seeing how an opportunity cost will have the decision of the pro-footballer on whether to move by himself or hire someone else.

As such, the opportunity cost (benefit foregone from an alternative) of moving on his own would usually mean to miss a practice or a game. In other words, the reason why he would have hired someone else in the first instance is so that he will not miss out of matches or practices.

If this assumption is followed, therefore, the best alternative is b. He is retiring, so he no longer has a trade-off of missing practice or a game.

Meaning, moving on his own will have no effect on his training or games since he is retiring.

Answer:

$889.29

Explanation:

We have to use the PV formula that is shown in the attachment.

Given that,  

Future value = $1,000

Rate of interest = 7.73%  ÷ 2 = 3.865%

NPER = 9 years  × 2 = 18 years

PMT = ($1,000 × 6%) ÷ 2 = $30

The formula is shown below:

= -PV(Rate;NPER;PMT;FV;type)

So, after solving this, the market price of a bond is $889.29

Since in semi annual basis, the interest rate is half and the time period is doubled. The same is applied

Answer:

True.

Explanation:

Indirect cost are cost incurred in the production process that cannot be traced directly back to the product, but contributes to the production process in general. For example the salary of wages is not a cost that is directly included in the product itself, but workers are needed to perform tasks and operate the machines that produce the product.

Direct cost are traceable directly to the product and include raw material.

So overhead, facilities and resource opportunity cost are all indirect cost in producing the product.

Answer:

How much she enjoyed improving her conversational German by living with a host family for one semester in college.

Explanation:

Global mindset can be defined as a set of attributes and qualities that a manager has that will be relevant to influence individuals, organizations and groups in other locations in the world.

There are three main dimensions of the global mindset:

In the case of the above question, Carly wants to show the interviewer that she has the psychological dimension of the global mindset, so the most suitable example is the option "How much she enjoyed improving her conversational German by living with a host family for one semester in college".

Because the psychological dimension corresponds to individual emotional expression, according to a constructive attitude towards diversity and their willingness to be and really get involved in the global environment.

Final answer:

To demonstrate the psychological dimension of the global mindset in an interview, Carly can discuss building strong relationships with German colleagues and the experience of improving her conversational German skills.

Explanation:

The psychological dimension of the global mindset encompasses a pervasive feeling of confidence in handling challenges presented by internal and external environments (pg. 19). To demonstrate this in an interview, discussing how she built strong, trusting relationships with colleagues at manufacturing facilities in Germany showcases the ability to navigate cultural differences and build connections effectively. Additionally, highlighting the experience of living with a host family to improve conversational German skills indicates adaptability and willingness to engage with different cultures.

Answer:

Total amount after 45 years will be equal to $12+0147.1

Explanation:

We have given initial amount, that is principal value P = $60000

Expected rate of return r = 7 %

Time period n = 45 years

We have to find the amount after 45 years , that is future value

Future value is given by

[tex]A=P(1+\frac{r}{100})^n[/tex], here A is future value P is present value r is rate of interest and n is time period

So [tex]A=60000\times (1+\frac{7}{100})^{45}[/tex]

[tex]A=60000\times 1.07^{45}[/tex]

[tex]A=60000\times21=1260147.1[/tex] $

So total amount after 45 years will be equal to $12+0147.1

The future value of $60,000 invested at a 7% annual return over 45 years is calculated using the compound interest formula, yielding a value of approximately $2,007,138 at retirement.

To calculate the future value of a $60,000 lottery winning invested in a retirement account that returns 7% per year over 45 years, we use the formula for compound interest:

FV = P(1 + r)^n

Where:

Plugging in the values, we get:

FV = $60,000(1 + 0.07)^{45}

Calculating this yields:

FV = $60,000(1 + 0.07)^{45} = $60,000(1.07)^{45}

Which equals:

$60,000 x 33.4523 = $2,007,138

The lottery winnings are therefore expected to be worth $2,007,138 when you retire in 45 years.

Answer:

Cross functional team

Explanation:

Cross-functional team - it is refer to that team that consist of people from different department and works for a common minimum program. The reason behind forming the Cross-functional team is to divide the work into the team and reduce the chances of politics that prevail within the department.

cross-functional teams help to synergies the environment that is comprised of different skills and experience and ultimately lead to creative outputs.

Answer:

$9.20

Explanation:

Total cost per unit = Fixed cost per unit + average variable cost

Average fixed cost = $78,000 / 65,000 = $1.2

Total cost per unit = $1.2 + $8 = $9.20

I hope my answer helps you

The total costs per unit for selling 65,000 pillows in February would approximately be $9.20.

The student asked about total costs per unit for Dreamland Company in February if they produce and sell 65,000 pillows. To calculate the total costs per unit, we must first find the total costs by adding fixed costs to the variable costs (which are $8 per unit). The company sold 65,000 pillows, so the total variable costs are $8 multiplied by 65,000. Fixed costs are given as $78,000.

Total variable costs = $8  imes 65,000 = $520,000

Total costs = Fixed costs + Total variable costs
Total costs = $78,000 + $520,000 = $598,000

To find the total costs per unit, we divide the total costs by the number of units sold:

Total costs per unit = Total costs \/ Number of units sold
Total costs per unit = $598,000 \/ 65,000

After performing the calculation, we find that the total costs per unit are approximately $9.20.

Final answer:

The correct answer is (b) The equilibrium price is indeterminate and equilibrium quantity goes up, as the increase in income would decrease the demand for Top Ramen, an inferior good, while the decrease in the price of salt would increase its supply, influencing the equilibrium in opposite ways.

Explanation:

The question addresses changes in the equilibrium price and equilibrium quantity of Top Ramen, a brand of noodles considered to be an inferior good, when income increases and the price of salt decreases. An inferior good is one where demand decreases as income increases, while a decrease in the cost of salt, an input for Top Ramen, would likely lead to an increase in the supply of Top Ramen.

An increase in income would typically lead to a decrease in the demand for an inferior good, which would tend to decrease the equilibrium price and quantity. However, a decrease in the price of salt would increase the supply of Top Ramen, which would tend to increase the equilibrium quantity and decrease the equilibrium price. When combining these two economic movements, the equilibrium price becomes indeterminate because the effects on price from a demand decrease and a supply increase oppose each other.

On the other hand, the equilibrium quantity would definitely increase, because both the decrease in demand (which lowers quantity demanded at the original price) and the increase in supply (which raises quantity supplied at the original price) result in suppliers willing to sell more at the new, lower price that the market would settle at.

Therefore, the correct answer is: b. The equilibrium price is indeterminate and equilibrium quantity goes up.

Final answer:

With an increase in income, the demand for Top Ramen, an inferior good, will decrease, leading to a lower equilibrium quantity. The price of salt decreases, leading to an increase in supply, making the equilibrium price indeterminate. Thus, the equilibrium price is indeterminate and the equilibrium quantity goes down.

Explanation:

When considering the effect of a change in income on the demand for an inferior good such as Top Ramen, an increase in income typically leads to a decrease in demand since consumers will often opt for higher-quality substitutes. Since Top Ramen is considered an inferior good, we can predict that as income goes up, the demand for Top Ramen will go down. Conversely, a decrease in the price of salt, which is a cost component of producing noodles, would lead to an increase in the supply of Top Ramen as it becomes cheaper to produce.

Therefore, with an increase in income, the equilibrium quantity of Top Ramen is expected to decrease. However, the equilibrium price is indeterminate because while a decrease in demand would normally lead to a lower price, an increase in supply would tend to lower the price further. Ultimately, the combined effect of these two changes is uncertain on the price without additional information on the relative magnitude of the shifts in supply and demand.

In summary, the answer is - the equilibrium price is indeterminate and equilibrium quantity goes down.

Answer:

$14,536

Explanation:

The total manufacturing cost of job 651 is determined by the sum of the direct materials, labor and machine costs:

Direct materials cost = $7,200

Direct labor cost = 179 hours x $23/hour

Machine cost = 87 hours x $37/hour

[tex]C=\$7,200 +(179*\$23)+(87*\$37)\\C=\$14,536[/tex]

The total manufacturing cost of Job​ 651 is $14,536.