Table 16-3 Julie Plans to Start a Pet-Sitting Service. She Surveyed Her

question 229

Multiple Choice

Table 16-3

Julie plans to start a pet-sitting service. She surveyed her neighborhood to determine the demand for this service. Assume that each person surveyed demands only one hour of pet sitting services per period. Table 16-3 above shows a portion of her survey results.
-Refer to Table 16-3.If Julie charges $10 per hour, what is the value of the consumer surplus received by Dawn?

• A)$2
• B)$10
• C)$12
• D)$22

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Definitions:

Financing Activities

Activities reported in the statement of cash flows that illustrate changes in the size and composition of the equity and borrowings of a company.

Bonds Issued

Long-term debt securities issued by corporations or governments to raise funds, promising to pay back with interest.

Statement of Cash Flows

A financial document summarizing the total cash inflows from operational activities and external investments a company gets, alongside the cash outflows for business operations and investments over a specific period.

Sale of Equipment

This transaction involves disposing of business equipment, typically recorded as a gain or loss in the financial statements, depending on the sale price versus book value.