Consumer Theory and Horizontal Axis

e. Workers: the workers were given less money when the prices of the goods decreased.

Question 31 In Bovania, cattle compose 48% of the consumer price index (CPI), housing composes 32%, and entertainment accounts for the remaining 20%. If, in a certain year, the price of cattle rises by 30% and the price of housing rises by 25%, then:

20. Which of the following statements is TRUE? Economists normally assume that the goal of the

17. All of the following, except one, are examples of pecuniary economies of scale. Which is the exception?

Warren Company makes candy. During the most recent accounting period, Warren paid $3,000 for raw materials, $4,000 for labor, and $2,000 for overhead costs that were incurred to make candy. Warren started and completed 10,000 units of candy, of which 7,000 were sold. Based on this information, Warren would recognize which of the following amounts of expense on the income

c.    At the time she had $237, the cost of a lesson rose to $19. How many lessons can she pay for with her remaining $237?

2. The poorer you are, the worse your economic life has become over the past 30 years.

22. Peter Mabel sold a total of 400 Oatmeal ($1.50) and Wheat ($2) breads during the Labor Day weekend. How many of each did Pete sell if total sales were $700?

Scenario 3: The nation is currently experiencing a period of rising prices. Inflation is making consumer goods increasingly difficult to afford as wages have remained constant.

Astaire Company uses the gross profit method to estimate inventory for monthly reporting purposes. Presented below is information for the month of May.

In January, Reyes Tool & Dye requisitions raw materials for production as follows: Job 1 $960, Job 2 $1,630, Job 3 $720, and general factory use $680. During January, time tickets show that the factory labor of $6,100 was used as follows: Job 1 $1,570, Job 2 $1,940 Job 3 $1,670, and general factory use $920. Prepare the job cost sheets for each of the three jobs. (If answer is zero, please enter 0, do not leave any fields blank.) Job 1 Date 1/31 1/31 Direct Materials 960 0 Job 2 Date 1/31 1/31 Direct Materials 1630 0 Job 3 Date 1/31 1/31 Direct Materials 720 0 0 1670 Direct Labor 0 1,940 Direct Labor 0 1570 Direct Labor

Dean runs a woodworking business specializing in kitchen cabinets. He knows there are other firms with top-of-the-line machinery that make better quality cabinets, but he does well and has a constant flow of business. Dean obviously has:

h. Calculate the rooms sold, occupancy %, and sales dollars he will need to break even if he opens the gift shop.

We assume the price of heater/blower is P1; the price of blanket is P2. V1 stands for volume of heater/blower; V2 stands for volume of blanket. So the minimum revenues= $500,000 + (0.3P+380)*V1 + (0.4P1+0.85)*V2

Suppose South Australian consumers’ average incomes increase from $3,000 to $3,400 per month, which then results in an increase in the quantity of smartphones demanded from 15,000 to18,500. You are required to do the following: