b) Is it advisable for a coffee shop owner to increase the price of his coffee if demand for coffee is price inelastic? Explain briefly using a diagram that demonstrates the impact on the firm’s Total Revenue.

c) Nicolas says that if income elasticity of demand for sugar is -0.7, sugar is an inferior good. Steve disagrees and claims that it is a necessity. Define income elasticity of demand and explain who is right and who is wrong with their statements above?

d) For Australian consumers of petrol, would the price elasticity of demand be greater for Shell petrol or petrol in general? Explain your reasoning

w = 50,000 + 10,000L

where w is wages, L is the number of players

The demand for players is given by the Marginal Revenue Product:

MRP = 500,000 – 20,000L

The Marginal Factor Cost to the club is :

MFC = $50,000 + 25,000L

If the NFL labor market were competitive, what would be the equilibrium number of players employed?

If the NFL labor market were competitive, what would be the equilibrium wage of a player?

We know that NFL labor market is a monopsony. Under a monopsony, what is the equilibrium number of players employed?

Under a monopsony, what is the equilibrium wage of a player?

Suppose the government of Mascolia is considering replacing its income tax system with a consumption tax. Assume that the government's revenue requirement would be the same under either system.

(a) How would the base of a consumption tax compare with the base of an income tax? Does this have implications for the magnitude of the tax rate on consumption versus the magnitude of the tax rate on income? Explain.
(b) Compare the income tax and consumption tax in terms of vertical equity, assuming that both tax all people at the same rate (for example, a 20% tax on income and a 20% sales tax).

Riley, Incorporated reports the following amounts at the end of the year:

In addition, the company had common stock of $74,000 at the beginning of the year and issued an additional $7,800 during the year. The company also had retained earnings of $27,300 at the beginning of the year and paid dividends of $1,700 during the year. Prepare the income statement, statement of stockholders' equity, and balance sheet.

On December 31, Year 13, Onyx Corporation accepted an 8%, 10 year, $300,000 note for consulting services performed at the end of Year 13. Interest on the note will be accrued quarterly, and the note carries an effective rate of 12%.

a. What would be the journal entry to record initial acceptance of the note?

b. What is the carrying value of the note on April 1^st, Year18, assuming 23 interest payments remain to be paid?

c. What is the total interest revenue of the note for the year-end December 31, Year 14 (round to the nearest dollar)?

1. The average Belgian person drinks approximately 30 gallons of soda a year. Some Belgian legislators are considering instituting a sales tax on soda to raise revenue and possibly fight obesity. Will a sales tax on soda reduce the mean amount of soda consumed? A sales tax is added to a random sample of communities to measure the effect on soda consumption.

1. State the null and alternative hypotheses:

2. If sample results give a p-value of 0.019, what is your general conclusion regarding whether to reject or not reject the null hypothesis?

3. In the context of this situation, explain your conclusion.

Question

Company X had the following information before adjustments:

Accounts receivable $230,000 (debit balance)

Allowance for doubtful accounts $3400 (credit balance)

Sales revenue (on credit) $1,580,000 (credit balance)

Sales returns and allowances $85,000 (debit balance)

Prepare the journal entry to record bad debt expense if the company estimates it to be 3% of receivables. Now assume the company determines that $3,000 will never be received. Prepare the journal entry to record the write-off. What is the net amount expected to be collected of the receivables after the write-off?

You do not have concerns about management's integrity, but you know that management's compensation is partially determined by meeting aggressive revenue targets. How would you consider this information in the audit risk model?

Question 3 options:

A manufacturer of tennis rackets finds that the total cost C(x) (in dollars) of manufacturing x rackets/day is given by

C(x) = 900 + 3x + 0.0003x².

Each racket can be sold at a price of p dollars, where p is related to x by the demand equation

p = 5 − 0.0002x.

If all rackets that are manufactured can be sold, find the daily level of production that will yield a maximum profit for the manufacturer. Hint: The revenue is

R(x) = px,

and the profit is

P(x) = R(x) − C(x).

How Many Rackets?

[Hint:10,000 rackets is incorrect]