Like many students at college, Arturo struggles to find a parking space on campus. Every year he has to buy a parking permit, which allows him to park on campus. Unfortunately, buying a permit does not guarantee that he can find a parking spot. So he often gets to campus well before class starts, hoping to find a good parking spot, but ends up driving around until someone leaves. One day after his economics class, Arturo comes up with a potential solution to the problem. He suggests the following: Suppose the demand for parking is given by the following equation: QD = 10,000 – 500P. At Arturo's school, there are 7,000 parking spaces for students. For the questions below, give all answers to the nearest whole number.

a. At most universities, students do not pay to park each day. They pay for a permit, which only allows them to park on campus. Therefore, the price students face each day is $ . Unfortunately, this creates a
of parking spaces.

b. The university, in order to prevent the shortage issue, is changing from selling parking permits to charging a daily parking fee. Suppose parking spaces were allocated at Arturo's school using the market mechanism. In this case, students would have to pay $ each day to park.

c. As his school gets larger, the demand for parking increases to QD = 12,000 – 500P. If Arturo's university wanted to keep the market price (the price of daily parking) the same, it would have to provide more parking spaces.

Fred smithers, a recent college graduate decided to open his own portable juice bar, smithers smoothies, to wheel around newport beach. you, a trusted friend of fred, are a business major that has also recently graduated and agreed to handle the books for a while to get some practical experience and have a favor that you can ask of fred in the future. given the following five transactions concerning the new venture, prepare the necessary journal entries for the transactions, post the journal entries to appropriate t accounts and prepare a trial balance as of the end of the month in order to answer to the necessary may 2: fred invests $12,000 of his own money to start the new company. this money was obtained from a part-time job working at a legal firm while he was in school. may 3: fred spent $5,100 cash to purchase a refrigerated trailer that he can pull behind his car and set up at the beach. under your advice, fred agrees to place the new asset under an account called "equipment." may 6: fred bought $640 of supplies on account from the flav-o-rite confectioners company. because they will last longer than a single accounting period fred agrees to record them as, "supplies" as per your suggestion. may 13: fred sat on the beach for six hours without a single sale and was feeling very down. right before he left, however, a plumber escorting his family reunion along the beach stopped by his stand and bought $800 worth of smoothies for the entire family. under your advice, fred agrees to call this cash revenue, "sales." may 15: excited about his new venture, fred withdraws $350 from the company to take his girlfriend out to dinner. what would be the balance in the cash account at the end of the period following the posting of all the transactions?