The net worth of your parents’ investments including real estate (not your parents' home is the amount left over after deducting debt owed on these investment.
What is the net worth of your parents' investments, including real estate (not your parents' home)?The net worth of your parents’ investments is amount left over after any debt for this investment has been deducted. These Investments are: real estate (but not homes you own and live in); rental properties, trust funds, UGMA/UTMA accounts, money market funds, stock options, certificates of deposits, mutual funds, stocks, bonds and other securities; Installment and Real Estate sale Agreements (Including Mortgages Owned), Coverdale, Commodities, Savings Plans, 529 as well as other college savings plans. etc. Not including the value of life insurance pension funds or annuities, non-education IRAs, retirement plans (401k); retirement funds or pensions; non-educational IRAs.
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shriver company built an addition to its chemical plant. indicate whether each of the following expenditures related to the addition is a revenue expenditure or a capital expenditure: a. shriver's initial application for a building permit was denied by the city as not conforming to environmental standards. shriver disagreed with the decision and spent $8,000 in attorney's fees to convince the city to reverse its position and issue the permit. answer b. due to unanticipated sandy soil conditions, and on the advice of construction engineers, shriver spent $58,000 to extend the footings for the addition to a greater depth than originally planned. answer c. shriver spent $3,000 to send each of the addition's subcontractors a side of beef as a thank-you gift for completing the project on schedule. answer d. shriver invited the mayor to a ribbon-cutting ceremony to open the plant addition. it spent $40 to purchase the ribbon and scissors. answer e. shriver spent $4,100 to have the company logo sandblasted into the concrete above the entrance to the addition. answer
Shriver company built an addition to its chemical plant. Indicating whether each of the following expenditures related to the addition is a revenue expenditure or a capital expenditure :
Capital ExpenditureCapital ExpenditureRevenue ExpenditureRevenue ExpenditureCapital ExpenditureWhat is the difference between Capital expenditure and Revenue expenditure.The distinction between capital expenditures and revenue expenditures depends on whether the purchases will be made for immediate or future usage. Funds used by a business to purchase, renovate, and maintain tangible assets like land, buildings, or machinery are known as capital expenditures (CAPEX). Typically, capital expenditures consist of one-time, sizable acquisitions of fixed assets that will be put to use in generating income over a longer time frame. Revenue outlays are often referred to as ongoing operating expenses, which are one-time costs incurred in carrying out regular business activities.
a. Capital expenditure - The $8000 is utilized to build a building extension.
b. Capital expenditure - $58,000 is utilized to build an expansion to the building.
c. Revenue expenditure - Despite being essential for motivating the contractors, this expenditure does not increase building costs.
d. Revenue Expenditure - To build an expansion, $40 is neither a material nor a necessary expense.
e. Capital expenditure - Using $4100, a brand is developed.
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morgan anticipates a balance due for next year. what actions should she take to prevent having a balance due.
The IRS Tax Withholding Estimator can assist taxpayers ensure that the appropriate amount of tax is withheld and prevent unpleasant surprises when filing the next year.
What exactly is a tax defined as?A tax is a compulsory fee or financial charge imposed by a government on a person or an entity in order to raise money for public works projects that provide the greatest infrastructure and facilities. Afterward, several public expenditure projects are funded using the funds obtained.
We pay taxes because why?Due to their inability to successfully provide such services for themselves, all residents benefit from taxes that are used to pay for defense, roadways, police, and a justice system, among other necessary services.
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the market for yogurt is initially in equilibrium. yogurt producers successfully advertise to encourage yogurt consumption. at the same time, yogurt producers exit the market. standard demand and supply analysis tells us that the:
A market price is just a result; it is not always a fair price. It does not provide complete satisfaction for both the customer and the vendor.
What is the equilibrium quantity in the market of widgets?When there is no tax, there should be 200 widgets sold each month to maintain market equilibrium. Afterwards, a $5 tax is levied on each widget. the government is able to collect $800 in taxes each month as a result. When the price exceeds equilibrium, there is a surplus, which prompts vendors to reduce their prices to absorb the surplus.
Any price below equilibrium causes a shortage, which drives up the cost of the commodity. The quantity of the good that buyers and sellers are both willing to purchase is equal at the equilibrium price, meaning that neither a shortage nor a surplus exists. The market price allows buyers to purchase the quantity they desire.
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to reduce their negative impact on the environment, people who brew coffee should buy beans that are grown naturally. which piece of evidence is the best support for the claim?
Shade-grown coffee, which replicates how coffee naturally develops, protects indigenous flora.
How is coffee grown in the shade good for the environment?Numerous studies have shown that the habitat on shade-grown coffee farms performs better than the habitat on sun-grown coffee plantations in terms of higher bird numbers and species, enhanced bird habitat, ground preservation/erosion control, carbon capture, natural pest management, and improved pollination.Shade-grown coffee works within the natural ecosystem, contributing to and receiving help from the system. Shade trees provide many nutrients to the coffee plants and the surrounding soil, natural predators help control coffee pests, and the shade trees help protect the coffee crops from frost.To learn more about ecosystem refer to:
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zachary is trying to improve his credit. which two areas will have the greatest effect on his credit score? select all that apply. responses his payme
zachary is trying to improve his credit. The two areas which will have the greatest effect on his credit score are: his debt balance and his payment history.
One of the most significant scoring factors that affects our credit ratings is the payment history. When there is a long history of on-time payments, the credit score is most affected. If one payment is missed, the payment history is also negatively impacted.The overdue debt can increase as a result of the missed payment, which also affects our credit scores.
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Help me ITs EASY TAKE A LOOK
Answer:
a) Employees (Staff)
Chief Executive officer (Owner)
b) Government
Share holders
define a good word as a sequence of letters that consists only of the letters $a$, $b$, and $c$ --- some of these letters may not appear in the sequence --- and in which $a$ is never immediately followed by $b$, $b$ is never immediately followed by $c$, and $c$ is never immediately followed by $a$. how many seven-letter good words are there?
define a good word as a sequence of letters that consists only of the letters $a$, $b$, and $c$ --- some of these letters may not appear in the sequence seven-letter good words are there 9
In 1860, the Scottish publisher Alexander Strahan published the first issue of the monthly magazine Good Words in the UK. [1] The publication's first editor was Norman Macleod. After his death in 1872, it was edited by his brother Donald Macleod, though there is some evidence that W. Isbister & Co. took over the publishing at this time. [The intended good word audience for Good Words was evangelicals and nonconformists, especially from the lower middle class. Along with works of fiction and non-fiction on a range of subjects, including science, it also had openly religious themes. The condition for content was that it should be appropriate for religious people to read on Sundays. [5] As a "fireside read," it became well-liked and popular.
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assume you will receive $100,000 in 15 years, and the appropriate interest rate is 7% per year. what is the present value of this cash inflow?
The answer to the given question about the Present Value of cash inflow with appropriate interest rate of 7% is 36,244.60
NPV = Cash flow / (1 + i)^t
= 100,000 / (1 + 0.7)¹⁵
= 36244.60
The worth of a cash flow at the current moment, discounted back to the date of initial investment at the discount rate, is known as the cash flow's present value. The present value of a cash flow stream is calculated by multiplying the discount rate by the present value of the cash flow for one period. Based on the idea that money in the now is more valuable than money in the future, present value is a means to depict the current value of future cash flows. The income from loans, mortgages, and other assets whose full worth may not be realized for many years is valued using present value. A financial term called net present value aims to measure the total worth of an investment opportunity.
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volvo of north america delivered automobiles to the siberian police force when siberia had no cash to pay for them. it accepted payment in oil, which it then sold for cash to pay for media advertising in the united states. this transaction is an example of
An illustration of such a transaction is countertrade.
Why do you use the term "countertrade"?Countertrade, a type of reciprocal international trade, entails swapping one service or product for another place of national cash. This type of international trade is more common in developing countries with limited credit or foreign currency possibilities.
What are countertrade strategies?A countertrend looks to profit from brief dips in the price movement of a rising security. In this method, a security which has undergone an impulsive bearish or bullish move is sold or bought with in hopes that a care received move higher or lower will allow the investor to sell or purchase it back.
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Suppose the economy is currently operating at an output level of $4,000 billion. Assume furthermore that potential output is $5,000 billion and the marginal propensity to consume is 0.75. Which of the following would be required to close this recessionary gap
To close this recessionary gap caused by the crisis, $250 billion in new income is needed.
At a $4,000 billion output level, an economy is active.
A $5,000 billion output level is possible.
Consumption propensity at the margin is 0.75.
The contractionary gap is
= $5,000 billion - $4,000 billion
= $1,000 billion
ΔY=I/1-MRP× ΔG
$1,000 =1/1-0.75 × ΔG
ΔG=$1,000/4= $250
To close this income gap caused by the crisis, $250 billion in new income is needed.The difference between the output of goods and services during full employment and during a recession, when employment is decreased, is known as the recessionary gap. The gross domestic product is used to measure this output (GDP). The lost potential of an economy that is experiencing a recession is measured by this gap, according to analysts.
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For long term success, what type(s) of motivation is/are necessary?
a. intrinsic
b. extrinsic
c. mostly extrinsic
d. intrinsic and extrinsic
Consumers' preferences are described by A. indifference curves. B. relative prices. C. household income. D. budget lines. E. demand curves.
Indifference curves are used to describe consumer preferences. An indifference curve is a graph that combines two products that provide the consumer with equal utility and satisfaction.
What does the term "indifference curves" mean?An indifference curve is a graph that displays possible pairings of two goods or commodities that, when purchased in any combination along the curve, leave the buyer equally well off or happy.A consumer is indifferent between the points on a graph that indicate various quantities of two items that are connected by an indifference curve in economics.Since both of the combinations are appealing, the consumer has no preference.
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which of the following is the best description of an exclusion? a) an exclusion is an item that is not taxable and is not included as income on the form 1040. b) an exclusion is an item that is deductible only if there is a tax liability. c) an exclusion is an item that is taxable but is deducted on the front of the form 1040. d) an exclusion is an item that is taxable but is deducted on the back of the form 1040.
An exclusion is something that isn't included in income on the Form 1040 and isn't subject to regular income tax, like a qualified Roth payout or interest from a municipal bond.
Which doesn't count as taxable income on Form 1040?Whether or not you report nontaxable income on your tax return, it isn't taxed. Donations, bequests, and inherited property, as well as cash refunds for goods you purchase from a retailer, producer, or dealer, are all exempt from taxation, according to the IRS.
What is an exclusion from income?Several different forms of income are exempt from taxation under the income exclusion rule. This law covers a wide range of income, including welfare payments, child support, life insurance death benefits, and interest on municipal bond holdings. There is no mention of excluded income on Form 1040.
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Explain the following statement: "When firms in different industries all compete for the same land, the marginal revenue product of the last unit of land rented will be equal across all firms, regard less of whether they are in different industries."
The last piece of land leased for each of these many sectors will be equal to the value of a marginal revenue product of land because every industry leases till VMP of land = R.
What are an example and industry?The business is a sector of the economy that converts raw resources into useful goods. Examples of the primary industries are agriculture, mining, and lumbering. Cement production and oil refineries are two instances of secondary industries.
What expression best describes the industry?Industry Best Practice refers to technological and operational procedures that are often required of a top provider in a comparable or same industry that is trying to uphold its contractual and legal obligations.
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All of the following are included in the broad factors manufacturers must consider when establishing a strategy for getting their product into the hands of the ultimate customer except
All of the following are part of the general elements that producers must take into account when developing a plan for getting their product into the hands of the final consumer, with the exception of reducing product costs.
Consumers are people or groups who don't actively engage in commercial or entrepreneurial operations and who plan to order or use purchased goods, experiences, or services primarily for their own social, familial, domestic, or other needs. The most common user of the word is someone who purchases items for their own use. On March 15, 1962, President John F. Kennedy provided the US Congress with his definition of "consumers." We are all consumers by definition, he remarked. This presentation served as the impetus for the creation of World Consumer Rights Day, which is today observed on March 15. In his address, John Fitzgerald Kennedy underlined that helping citizens exercise their rights is one of the essential duties of the government.
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5,000 is put into an empty savings account with a nominal interest rate of 5%. no other contributions are made to the account. with monthly compounding, how much interest will have been earned after 5 years
The Option D is correct because the interest amount equals $1,420.
What is Future value?Future value (FV) is the value of an asset now based on an anticipated rate of increase in the future. Investors and financial planners use the future value to project how much an investment made now will be worth in the future.
Future value refers to an asset's value in a future time. It calculates the nominal amount of money that an amount of money will be "worth" at a specific period in the future under the assumption of a specific interest rate, or more generally, rate of return; it is the present value multiplied by the accumulation function.
Given Information
Present value = $5000
Rate of interest = 5 %
Time = 5 years
Compounded monthly = 12
Future value = $5,000 * (1+5%/12)^5*12
Future value = $5,000 * (1+0.004167)^60
Future value = $5,000 * (1.004167)^60
Future value = $5,000 * 1.28338423942
Future value = $6,416.9212
Future value = $6,416.92
Interest amount = Future value - Present value
Interest amount = $6,416.92 - $5,000
Interest amount = 1,416.92
Interest amount = $1,420
Therefore, the Option D is correct because the interest amount equals $1,420.
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is this statement true or false? gross domestic product is a primary characteristic in determining the strength of a country's economy. responses true true false
Yes, Gross domestic product is a primary characteristic in determining the strength of a country's economy.
Economists traditionally use gross domestic product (GDP) to count economic progress. If GDP is emerging, the economy is in solid shape, and the nation is moving ahead.
On the other side, if gross domestic product is decreasing, the economy might be in problem, and the nation is losing ground. Two regularly quarters of negative GDP typically define an economic recession.
Gross domestic product is alike to the total monetary value of all final goods and services that have been swap within a specific country (economy) over a set period of time.
Gross Domestic Product is the dollar value of all goods and help that have changed hands throughout an economy.
Increasing GDP is a sign of economic power, and negative GDP shows economic weakness.
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maria purchased manufacturing equipment several years ago at a cost of $16,000 to use in her business. she claimed $9,716 of cost recovery deductions. she sold the equipment for $8,000. what is the amount and character of the gain or loss resulting from this disposition? a) $8,000 ordinary loss b) $9,716 ordinary income c) $1,716 of ordinary income, $0 long-term capital gain d) $8,000 capital loss
Over and beyond the property's adjusted basis, money was made when it was converted into cash or other assets.
What is the character of a gain or loss?735, Gain or Loss Characteristics So, if the selling profits are greater than the partner's basis, ordinary income will be generated; if the sale proceeds are less than the partner's basis, ordinary loss will be generated.The carrying value of the asset is the asset's original purchase price less any accrued impairment charges and all accumulated depreciation. From the asset's sale price, deduct this carrying amount. A gain has occurred if the remainder is positive. A loss has occurred if the remaining is negative.Gain or Loss on Disposition is defined as the gain or loss from the sale, exchange, or other taxable disposition of all of the Partnership's property, or any significant portion thereof (gain or loss from sales are excluded).To learn more about basis refer to:
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Correct answer is (c) $1,716 of ordinary income, $0 long-term capital gain. The amount of gain or loss is calculated by subtracting the amount of cost recovery deductions ($9,716) from the SP of the equipment ($8,000).
What is the difference between an ordinary income and a capital gain and why the answer is $0 long-term capital gain?An ordinary income is income derived from a trade or business and is taxed at ordinary income tax rates. A capital gain is income derived from the sale of a capital asset, such as stocks, bonds, or real estate, and is taxed at a lower rate than ordinary income. Since the equipment was held for more than one year, it is considered a long-term capital asset, and any gain or loss from its sale would be a long-term capital gain or loss. Since the gain is negative, there is no long-term capital gain.
What is the difference between a short-term and a long-term capital gain?A short-term capital gain is realized when a capital asset is held for less than one year before it is sold, and is taxed at the same rate as ordinary income. A long-term capital gain is realized when a capital asset is held for more than one year before it is sold, and is taxed at a lower rate than ordinary income.
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market failure is a situation in which group of answer choices negative economic profits persist in the long run. negative economic profits exist in the short run. the market does not provide the ideal or optimal amount of a particular good. both a and b a, b, and c
The correct option is C i.e., the market does not provide the ideal or optimal amount of a particular good.
What does the term "market" in economics mean?The entire number of buyers and sellers in the area or region under consideration is referred to as the market. Earth, as well as several nations, regions, states, and cities, may be the subject. The worth, expense, and cost of the goods traded depend on the forces of supply and demand in the market.
What is a strong market economy sentence?New prospects have also been presented by the developing market economy. People are asked if they would rather shop in a market economy or wait in line in a command economy. A contemporary market economy cannot exist without a modern state.
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Tara is interested in designing automated systems for a supply chain. Which type of degree would she most likely need?
Tara will almost certainly need a mechanical engineering degree to create automated supply chain solutions.
Which type of degree would she most likely need?Mechanical engineers develop and manage manufacture of a wide range of items, from medical equipment to brand-new batteries. Mechanical engineers design other machines found inside buildings, such as escalators and elevators. They also develop material-handling systems such as automated transfer stations and conveyor systems.
With a degree in mechanical engineering, one may build everything from small gadgets like watches to enormous spacecraft with moving parts like space shuttles. Mechanical engineers are typically part of teams that build robots, and they are also involved in the creation of medical equipment.
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select all of the factors which contribute to the success of high-volume systems. multiple select question. minimization of quality problems preventative maintenance supplier delivery delays product or service design
The factors which contribute to the success of high-volume systems are:
preventative maintenanceproduct or service designminimization of quality problemWhat do high-volume systems aim to accomplish?
Any company that wants to keep up with high client demand should use high-volume technologies since they enable producers to make things significantly faster than other approaches. Because large numbers are created all at once during mass manufacturing, the total production cost per unit can be decreased.
Standardized tools and processes that perform identical or strikingly similar operations on clients or goods as they go through the system define high-volume systems.
Therefore, Mass production is distinguished by extremely high production rates and little diversity or flexibility.
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josh has an ipod and frequently downloads songs from the itunes website. he pays a small fee for each download, but downloading a song does not remove it from the itunes inventory. other consumers can also pay the fee and download a song that josh might have already accessed. the itunes service is best described as:
Josh has an ipod and frequently downloads songs from the itunes website. he pays a small fee for each download, but downloading a song does not remove it from the itunes inventory. other consumers can also pay the fee and download a song that josh might have already accessed. the itunes service is best described as an artificially scarce good.
What is scarce goods?
A good that has been made artificially rare is nonrival in consumption and excludable. Examples include computer software, pay-per-view movies, and other information products.
like a natural monopoly in some ways. Despite the fact that there is no marginal cost, producers nonetheless incur fixed costs, which could be quite expensive.
What products are considered rare goods?
The term "scarce goods" refers to commodities and services that are only present at a specific time. For instance, raw materials, land, oil, labor, tools, and machinery.
The term "scarce goods" refers to commodities and services that are only present at a specific time. Gold, labor, oil, equipment, tools, land, and raw materials are a few examples. See also: The distinction between intermediate and final goods.
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a. annual picnic for plant employees and their families b. cost of fabric used by clothing manufacturer c. cost of plastic for a toy manufacturer d. cost of sewing machine needles used by a shirt manufacturer e. cost of television commercials f. depreciation of copying machines used by the marketing department g. depreciation of microcomputers used in the factory to coordinate and monitor the production schedules h. depreciation of office building i. depreciation of robotic equipment used to assemble a product j. electricity used to operate factory machinery k. factory janitorial supplies
Every year, factory workers and their families have a picnic. Product costs and manufacturing overhead expenses.
What included in the cost of the product?Product costs are expenses incurred to produce a good that is meant to be sold to consumers. Direct materials (DM), direct labor (DL), and manufacturing overhead are all part of the cost of the product (MOH).
What are the three different product costs?Direct materials, direct labor, and overhead are the three main types of costs that are involved in manufacturing operations. The fact that some service sectors do not have direct material costs and some automated manufacturing businesses do not have direct labor expenses should be noted as an exception.
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which of the following is/are part of the activities and responsibilities of product and service design? multiple select question. formulate cost targets. develop new products/services. design a company's financial plan. construct and test prototypes. translate product/service specifications into process specifications.
(E) Converting process specs from product/service specifications is part of the activities and responsibilities of product and service design.
What is product and service design?Customer happiness is the key consideration in product and service design.
As a result, it is crucial for designers to comprehend what the client wants and create products accordingly.
The main source of this data is marketing.
For instance, when a senior citizen wishes to reserve an Uber trip to visit a friend in the hospital, the car is a product in the context of service design, but it is also a tool.
In these situations, there is a lot to think about.
This user might be using a smartphone that she's still getting used to accessing Uber.
Therefore, (E) converting process specs from product/service specifications is part of the activities and responsibilities of product and service design.
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Complete question:
Which of the following is/are part of the activities and responsibilities of product and service design? multiple select questions.
a. formulate cost targets.
b. develop new products/services.
c. design a company's financial plan.
d. construct and test prototypes.
e. translate product/service specifications into process specifications.
what amount should blue include as net cash provided by operating activities in the statement of cash flows?
The net cash flow from operating operations of a corporation shows whether any new funds entered or left the company.
What is a cash flow?Cash flow refers to the net change in cash and cash equivalents coming into and leaving a business. Fundamentally, a company's ability to maximize long-term free cash flow and generate positive cash flows defines its capability to add value for shareholders (FCF). FCF is the cash that remains from a company's ordinary business operations after any capital expenditures have been paid for (CapEx). Examining cash flows involves using the cash flow statement, a common financial statement that lists a company's sources and users of cash during a specific time period. The cash flow statement is one of the most important financial statements a company issues, along with the balance sheet and income statement.
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determine which of the four distinct components of the problem-oriented record serves to help index documentation throughout the record?
Problem list is one of the components of the problem-oriented record that serves to help index documentation throughout the record.
A list of current and active diagnoses, as well as historical diagnoses, that are relevant to the patient's current care. The problem list must be a dynamic element of the health record that is primarily used for care delivery. Health, psychiatric, nursing, dental, social, and preventive care are examples of difficulties.
A problem list is a document that lists the most significant health issues confronting a patient, such as nontransitive illnesses or diseases, injuries sustained by the patient, and anything else that has affected or is presently affecting the patient.
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Discuss the differences between the constant opportunity cost and the increasing opportunity cost in terms of Production Possibility Curve. is.) the shapes of PPC and the main assumption behind these two.
The assumption of constant costs is that all resources are equally good and equally appropriate to the production of both goods.
Growing opportunity costs imply that greater amounts of D must be sacrificed for every new unit of G generated.
What is constant opportunity cost?
Opportunity Cost is the potential profit that is lost when a person, company, or investment chooses one course of action over another.
A person can make better decisions by investigating and comprehending a missed opportunity that was lost because one investment was made over another.
Both time and money can be used to calculate opportunity costs. If one is not vigilant, one may overlook these potential costs, which may not cause any immediate losses. but they could add up to be a long-term catastrophe.
Opportunity cost is the expense of selecting one choice over another, whether it be in terms of time, money, effort, or utility. We make these choices without considering all of these factors.
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a business having fewer than 500 employees, independently owned and operated, not dominant in its field, and not characterized by many innovative practices is a(n)
Five Business Ventures, Having less than 500 employees, being independently owned and run, not being the market leader, and not being known for many creative business methods are common characteristics of small businesses.
Economic activity goes through periods of boom and then fall during business cycles. Both the general welfare of society and the welfare of private enterprises are impacted by these developments. Changes in a broad economic measure, such as Real Gross Domestic Product, are generally examined to determine how business cycles have changed through time. Many macroeconomic indicators have widespread upswings and downswings, which are classic examples of business cycle fluctuations. Each expansion/recession episode's duration and intensity change over time. Usually, their periodicity lasts for two to ten years. As in, their mathematical methodology, which employs a Bayesian statistical paradigm, may really include such flexible knowledge about the frequency of business cycles.
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the following selected amounts are available for vizio company. retained earnings (beginning) $1,600 net loss 300 cash dividends declared 200 stock dividends declared 200 what is its ending retained earnings balance? group of answer choices $1,300 $1,400 $900 $1,200
The correct option is C i.e., $900 is its ending retained earnings balance for the Vizio company.
What do you mean by earnings?The profits that a business makes are its earnings. They are obtained by deducting revenue from cost of products sold, operational expenditures, and taxes. The creation and ongoing operation of a business are primarily motivated by the desire to generate profits. Dividend payments to shareholders can then be made with the earnings.
What do earnings mean?Earnings are the sum of money that a person or organization receives over a specific time period. They can be found on an income statement for a business and are used to gauge how profitable it is. Better financial performance is typically indicated by higher recurring earnings, which can also have a beneficial effect on stock values.
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rao has a budget of $250 and goes to amazon to buy goods x and y. if the price of x is $5, and price of y is $10; and he buys 20 units of good x, what is the maximum amount of units of y he can buy?
Rao has a budget of $250 and goes to amazon to buy goods x and y. if the price of x is $5, and price of y is $10; and he buys 20 units of good x. The maximum amount of units of y he can buy is 15.
We know that the toral amount we have is $250.
The amount on buying 20 units of good x = units * price for one unit of good x
= 20*5
= $100
Total amount remaining with Rao = $250 - $100
= $150
Now, we have $150 left for which we have to calculate how many units can be bought. We know the unit price of one one good, so we will divide it by the number of money left.
y units that can be bought = 150/10
= 15.
This is the concept of budget constraint.
Budget Line/Constraint is a graphical representation of the product combinations that a consumer can purchase based on product prices and income (all spent).
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