The Quantity Demanded Each Month of Russo Espresso Makers Is

question 152

Multiple Choice

The quantity demanded each month of Russo Espresso Makers is 250 when the unit price is $125.00. The quantity demanded each month is 1,100 when the unit price is $91.00. The suppliers will market 700 espresso makers if the unit price is $74.00 or lower. At a unit price of $109.00, they are willing to make available 2,450 units in the market. Both the demand and supply equations are known to be linear. Find the equilibrium quantity and the equilibrium price.

• A) equilibrium quantity 1,250 units; equilibrium price $85.00
• B) equilibrium quantity 1,250 units; equilibrium price $90.00
• C) equilibrium quantity 1,140 units; equilibrium price $90.00
• D) equilibrium quantity 1,140 units; equilibrium price $85.00

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Definitions:

Allowance Method

The method of accounting for uncollectible accounts that provides an expense for uncollectible receivables in advance of their write-off.

Receivables

All money claims against other entities, including people, business firms, and other organizations.

Written Off

The process of recognizing that a portion of a company's assets or receivables has decreased in value and is unlikely to be recovered, thus removing it from the balance sheet.

Account Receivable

A claim against the customer created by selling merchandise or services on credit.