Economics Answers

Briefly list and elaborate on the factors that will be affecting the demand for the following
products in the next several years. Do you think these factors will cause the demand to in-
crease or decrease?
a. Convenience foods (sold in food shops and supermarkets)
b. Products purchased on the Internet
c. Fax machines
d. digital cameras
e. DVDs rented from retail outlets
f. Pay-per-view television programing
g. Airline travel within the United States; airline travel within Europe
h. Gasoline

If taxi fares rise, what will happen to the total revenue received by taxi operators assuming that the elasticity of demand for taxi fares is elastic?

A consumer of two goods faces positive prices and has a positive income. His utility function is
u(x1, x2) = x1.
Derive the Marshallian demand functions.

A consumer of two goods faces positive prices and has a positive income. His utility function is
u(x1, x2) = x1.
Derive the Marshallian demand functions.

Why is capital formation important to the south African economy

3- A travel company has hired a management consulting company to analyze demand in 26 regional markets for one of its major products: a guided tour to a particular country. The consultant uses data to estimate the following equation:
Q = 1,500 - 4P + 5A+ 10I +3PX
where Q = amount of the product demanded
P = price of the product in dollars
A= advertising expenditures in thousands of dollars.
I = income in thousands of dollars
PX = price of some other travel products offered by a competing travel company
a. Calculate the amount demanded for this product using the following data:
P = $400
A= $20,000
I = $15,000
PX = $500
b. Suppose the competitor reduced the price of its travel products to $400 to match the price of this firm’s product. How much would this firm have to increase its advertising in order to counteract the drop in its competitor’s price? Would it be worth it for them to do so? Explain.
c. What other variables might be important in helping estimate

Gemini completed these transactions during 2015:

March 1 The directors declared a $0.75 per share cash dividend payable on March 31, to the March 15 shareholders of record.
June 1 Issued 12,000 common shares at $6.50 per share.
October 1 Issued 8,000 common shares at $4.75 per share.
December 1 The directors declared a $1.25 per share cash dividend payable on January 2, 2016, to the December 15 shareholders of record.
December 31 Net income for the year is $245,000.
Required:
2. Prepare the equity section of Gemini’s balance sheet at December 31, 2015.

On January 1, 2015, Oskar, Lucy and Dexter agreed to dissolve their partnership. Their partnership agreement allocates profit and losses equally among the partners. The current period’s ending capital account balances are Oskar, $15,000, Lucy, $10,000, and Dexter, $(6,000). After all the assets are sold and liabilities are paid, but before any contributions to cover any deficiencies, there is $19,000 in cash to be distributed.
REQUIRED:
Prepare the journal entries to end the partnership under each of the following unrelated assumptions. Explanation is not required.
a) Dexter pays $6,000 to cover the deficiency in his account.

Galaxy Inc. has issued and outstanding a total of 30,000 shares of $3 preferred shares and 185,000 common shares. The company began operations and issued both classes of shares on January 1, 2012. It has declared and paid dividends each year as shown below.
Required:Using the table below, calculate the total dividends distributed to each class of shareholder, assuming:
a. The preferred shares are cumulative.
b. The preferred shares are non-cumulative

How does the mixed economic system have the same disadvantages as market capitalism?Discuss.