DEMAND/SUPPLY SCHEDULE 1 DEMAND/SUPPLY SCHEDULE 2

Price Qd Qs
Qd + 200

(At each price)

Qs + 200

(At each price)

$50 200 800
$45 300 700
$40 400 600
$35 500 500
$30 600 400
$25 700 300
$20 800 200
1. Please complete demand/supply schedule 2 i. e if Qd and Qs from schedule 1 are increased by 200 units.

2. Determine equilibrium Price & Quantity in Schedule 1

3. Determine equilibrium Price & Quantity in Schedule 2.

4. Assume a price floor of $45 in Schedule 1; what is the result?

Assume a price ceiling of $25 in Schedule 1; what is the result?

In both cases what is the implication for resource allocation?

5. Distinguish between a change in demand/supply and change in quantity demanded/supplied.

6. In Schedule 2 state four (4) reasons that would shift the demand curve.

7. What are five (5) reasons that would shift the supply curve?

Lohn corporation is expected to pay the following dividends over the next four years: $18, $14, $13, and $8.50. afterward, the company pledges to maintain a constant 4 percent growth rate in dividends forever. if the required return on the stock is 14 percent, what is the current share price?

Alandowner and his neighbor purchased adjoining undeveloped lots. after both built homes on their respective lots, the landowner suggested to the neighbor that a common driveway be built where the two lots joined. the neighbor agreed. the landowner and the neighbor split the cost of constructing the driveway and entered into a written agreement to equally share the costs of its upkeep and maintenance. the agreement was recorded in the county recorder's office. two years later, the neighbor built a new driveway located entirely on his lot. the common driveway, which the landowner continued to use but which the neighbor no longer used, began to deteriorate. the landowner asked the neighbor for money to maintain the common driveway, but the neighbor refused to contribute. three years later, the neighbor conveyed his lot to a friend. the friend entered into possession and used only the driveway built by the neighbor. by this time, the common driveway had deteriorated badly and contained numerous potholes. the landowner asked the friend to pay half of what it would take to repair the common driveway. the friend refused. the landowner repaired the driveway and sued the friend for 50% of the cost of repairs. will the landowner prevail?

Xyz corporation has provided the following data concerning manufacturing overhead for july: actual manufacturing overhead incurred $ 69,000 manufacturing overhead applied to work in process $ 79,000 the company's cost of goods sold was $243,000 prior to closing out its manufacturing overhead account. the company closes out its manufacturing overhead account to cost of goods sold. which of the following statements is true? multiple choice manufacturing overhead was overapplied by $10,000; cost of goods sold after closing out the manufacturing overhead account is $253,000 manufacturing overhead was underapplied by $10,000; cost of goods sold after closing out the manufacturing overhead account is $233,000 manufacturing overhead was underapplied by $10,000; cost of goods sold after closing out the manufacturing overhead account is $253,000 manufacturing overhead was overapplied by $10,000; cost of goods sold after closing out the manufacturing overhead account is $233,000