Sprawl increases in, or adjacent to, a city the need for cars increases.
What is meant by sprawl?
"Sprawl is the process in which the spread of development across the terrain outpaces population expansion, according to the definition.
What is sprawling growth?
Sprawl development refers to the outward growth of low-density residential and commercial development into the periphery of cities and towns, far from downtown districts. Sprawl has pushed Bay Area cities and suburbs onto rural and agricultural lands over the past few decades.Learn more about sprawl
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true or false: if a partnership has debt, the debt generally serves to increase the partner's outside basis.
If a partnership has debt, the debt generally serves to increase the partner's outside basis. This statement is true.
A capital interest is a partner's share of the net assets of a partnership at liquidation. The partner's outside basis is increased by the amount of the compensation income recognised. Unless an exception is met, a partner who contributes services to a partnership in exchange for profits interest does not recognise compensation income.
The outside basis and the capital account have very similar calculations, cash distributions, and allocation of income and loss. However, the outside basis also includes a share of any debt that the partner has adopted as part of its partnership investment.
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For financial reporting purposes, an advance payment for services is not recorded as a revenue, but rather recorded as a(n).
An advance payment for services is NOT recorded as revenue but rather as a liability for financial reporting reasons.
What is Liquidity?According to their liquidity, or how quickly they may be converted into cash, assets are sometimes grouped. Cash is the most movable asset on your balance sheet since it may be utilized right away to settle a debt. A factory, on the other hand, is an illiquid asset because it will likely take some time to sell it and turn it into cash.Current assets are those that are most liquid. These assets, which include cash, marketable securities, inventory, and accounts receivable, can all be turned into cash in less than a year. These resources bring in money for your business.The category of fixed assets includes all non-liquid assets. These include buildings, automobiles, and equipment. Your company owns fixed assets, which help to generate income but are not used to generate income or retained for cash conversion purposes. Fixed assets are tangible goods that often need a sizable capital investment and last for a considerable amount of time.To Learn more About liability refer to:
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the quality of a finished product does not depend on the quality of the raw materials used to make it. True or False
It is TRUE that, the quality of a finished product does not depend on the quality of the raw materials used to make it.
Raw materials are the stock or input goods that a business needs to manufacture its goods.
A few examples of raw materials are steel, oil, corn, grain, gasoline, lumber, forest resources, plastic, natural gas, coal, and minerals.
Direct raw materials are those that are used directly in the manufacturing process, such as wood for a chair.
Direct raw materials are utilized extensively throughout the production process but do not end up in the finished product.
On the balance sheet, the value of the inventory of direct raw materials is shown as a current asset.
To keep track of their inventory of raw materials, manufacturing companies take special measures. On their balance sheet, this includes three different inventory classifications as opposed to just one for non-manufacturers.
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which of the following would not contribute to a conflict between the decision model a manager uses and the performance-evaluation model top management uses to evaluate managers?
Sunk costs are important while making decisions, but they are not important when assessing results.
What is a sunk cost?In economics and commercial decision-making, a cost that has already been incurred and cannot be recovered is referred to as a sunk cost. Sunk costs are expenses that can no longer be avoided if future action is taken; they are contrasted with prospective costs. In other words, a sunk cost is an expense from the past that is no longer relevant to decisions being made about the present. Consumers frequently factor past costs for things like fixing a car or house into their future decisions involving those properties in daily life, even though economists claim that sunk costs are no longer important for making future rational decisions. Only prospective (future) costs are relevant to a rational decision, according to classical economics and conventional microeconomic theory.
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Compare the alternative methods of setting prices for regulated, natural monopolies and make an argument as to which is the best alternative.
The dilemma is the trade-off between maintaining the economically efficient amount of production and allowing firms to earn normal profits so that they will stay in the industry. Average cost pricing is often a compromise - better than a monopoly's price, but not as efficient as marginal cost pricing.
monopoly price about through monopoly. A monopoly happens when a corporation lacks any viable competition and is the only manufacturer of the enterprise's product. Because a monopoly faces no competition, it has absolute marketplace power and may set a rate above the value. Since marginal value is the increment in general value required to provide an extra unit of the product, the corporation could make a nice financial income if it produces an extra amount of the product and sells it at a decreased rate.
The monopoly guarantees a monopoly rate exists while it establishes the amount of the product. As the only provider of the product inside the marketplace, its income set up the complete enterprise's delivery inside the marketplace, and the monopoly's manufacturing and income selections can set up an unmarried rate for the enterprise with none having an effect on competing firms. The monopoly usually considers the demand for its product because it considers what rate is appropriate, such that it chooses a manufacturing delivery and rate aggregate that guarantees a maximum financial income
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what are the future value and the interest earned if $4000 is invested for 4 years at 8% compounded quarterly? (round your answers to the nearest cent.) future value $ interest earned $
As a result, the value of the future is $4,457.84
This formula can only be used for a single lump sum investment. The same number, specifically the number of annual compounding periods, is used to divide your interest rate and multiply your total annual compounding periods. Some examples of annual compounding periods are: Once every year, twice every half-year, twelve every month, and four every quarter.
The difference between what we invested and what we earned is the interest we earn.
As a result, the amount of interest earned is $1,457.84.
The initial investment is represented by the "present value" in compound interest. The "future worth" addresses the last sum (starting venture + all out interest).
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allocating service department costs provides a service firm a basis for evaluating the manufacturing costs for the company. profitability of its customers. value of its services. costs and profitability of its services.
Cost allocation provides a service firm a basis for evaluating the cost and profitability of services.
A company's profitability is determined by comparing its revenue to its outgoing costs. A more efficient organization will make more money relative to its costs than a less efficient one, which would have to spend more to make the same amount of money. Income and outlays are used to gauge profitability. Income is money made from a business's operations. A service is defined as "an act or use that a customer, business, or the government is willing to pay for." As examples, consider the work performed by barbers, physicians, attorneys, mechanics, banks, insurance companies, and others. All of society must contribute to the cost of providing public services.
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the jacksons have lived in their home for the last 25 years, and have $50,000 in soh protections. they will be moving soon to a newer home, which is more expensive. how much of their accumulated soh protections may they transfer to their new home?
$50,000 - The Jacksons may transfer the entire $50,000 for SOH protections here to newer property as long as it is more expensive.
Define the term SOH protections?In 1992 Florida voters approved Constitutional Amendment 10, meant to shield homeowners from runaway increases in their property taxes as a result of the booming real estate prices. This is also known as Save Our Homes.
Following the first year a residence earns a homestead exemption and thus the property appraiser values it at fair market value, the assessment for each subsequent year cannot rise by more than 3% or the percentage change mostly in Consumer Price Index (CPI), whichever one is smaller.The "Save Our Homes" (SOH) assessment limitation refers to this. The SOH benefit is the total difference between it assessed value and the fair (market) value.The Jacksons have $50,000 for soh protections and have resided in their house for the past 25 years. They are soon to relocate to a more expensive, newer home.
Thus, the Jacksons are free to move the entire $50,000 to SOH protections to a newer, more pricey property.
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an investment contract that offers life insurance benefits plus participation in a portfolio of securities is called a:
Such a contract is known as a variable life insurance contract
A variable life insurance policy is a contract between an insurer and the insurance firm. It is intended to achieve specific financial, insurance, and tax planning objectives. It is a policy that will give the person's beneficiaries or family a certain amount after a person's death. Variable life insurance, also known as variable appreciable life insurance, has both lifetime coverage and a cash value account.
Variable life insurance policies provide a higher potential for future cash gains than traditional permanent life insurance plans. A variable life insurance contract enables both participation in a separate security portfolio and life insurance benefits. A variable annuity provides a death benefit, however, a death benefit is not the same as life insurance.
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To support their other promotional efforts, firms use ________blank to generate free media attention.
Companies utilize public relations to get free media attention to promote their other promotional initiatives.
How do public relations work?
The field of public relations (PR) consists of a variety of methods and approaches for controlling how news about a person or organization is presented to the general public, particularly the media. Disseminating significant company information or events, upholding a positive brand image, and turning negative situations into positive ones to lessen the fallout are its main objectives.
A company press release, news conference, journalist interviews, social media posts, or other events can all be used for PR. Every person or organization that operates in public faces the spread of information about them or their practices to the public.
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alisa pursues the option to reallocate the bonus money which is currently only allocated to upper management. this will give employees a salary increase while decreasing the bonus for upper management. which conflict handling style does this exhibit?
Alisa pursues the option to reallocate the bonus money which is currently only allocated to upper management. Problem solving conflict handling style does this exhibit.
Problem solving conflict style:In problem- solving mode, the individualities or groups in conflict are asked to concentrate on the problem, not on each other, and to uncover the root cause of the problem. This approach recognizes the oddity of one side being fully right and the other being fully wrong.
What's the meaning of conflict style?Conflict is frequently best understood by examining the consequences of colorful actions at moments in time. These actions are usefully distributed according to conflict styles. Each style is a way to meet one's requirements in a disagreement but may impact other people in different ways.
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marketers and senior managers like to see graphical depictions of where their brands are, and where their competitors are in the minds of their customers. what are these called? histograms perceptual maps genograms opinion charts
Marketers like to see graphical depictions of where their brands are. These are known as perceptual maps. The correct answer would be option B.
Market mapping or perception mapping is a graphical representation technique used by property marketers to represent visually how customers or prospective customers perceive products or services. Customer views, not business perceptions, determine how a brand is positioned.
Perceptual maps can be used to pinpoint market insufficiencies, potential business partners or targets for mergers, as well as to explain any perceptual issues with a company's offering. Therefore, a company may conduct market research to determine the status of its brand in the marketplace. This will enable them to learn how consumers perceive their brand in comparison to competing products on the market.
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some states allow two sales associates in the same brokerage to represent opposing sides to a transaction without creating a dual agency by using
Some states allow two sales associates in the same brokerage to represent opposing sides to a transaction by using Designated agency
What is designated agency?
Designated agency refers to a specific agent who is designated by their brokerage to represent a party in the sale. generally, one agent from that brokerage will formerly be representing the buyer or dealer.
Does a designated agency claim to be in writing?In order to prove a designated agency relationship with a customer, you must access into a written contract that specifically says that the agent will be a designated agent. For this reason, designated agency isn't an option unless the establishment's agents constantly enter into written buyers' agency contracts.
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1. in general (do not reveal your team's specific strategy), how should you balance your marketing and sales by geography? what factors must you consider? how will you forecast demand? what are some good rules of thumb on how to approach planning how many shoes to make for which geographies?
We support strong retailers and use strong advertising, a high model number, and a higher S/Q to get as many orders as possible to increase our market share.
How does marketing relate to geography?
Geographical data can help marketers around the world see the big picture, get in touch with local culture, and be more nimble and quick to take advantage of new market opportunities to stay ahead of the competition.
What is the significance of location in marketing?
Geographical location plays a crucial role in determining product sales and market positioning due to the fact that individuals in different locations are bound to exhibit distinct characteristics and have distinct wants and needs. When developing your marketing strategy, you should take this into account.
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in 2018, a company using us gaap made cash payments of $6 million for sala-ries, $2 million for interest expense, and $4 million for income taxes. additional information for the company is provided in the table:
Based on the information given, the company's operating cash flow for 2018 is closest to $6 million.
Operating cash flow = Cash received from customers − (Cash paid to suppliers + Cash paid to employees + Cash paid for other operating expenses + Cash paid for interest + Cash paid for income taxes)
Cash received from customers = revenue + decrease in accounts receivable = $37 + $3 = $40 million
Cash paid to suppliers = Cost of goods sold + increase in inventory + decrease in accounts payable
= $16 + $4 + $2 = $22 million.
Therefore, the company's operating cash flow = $40 − $22 − Cash paid for salaries − Cash paid for interest − Cash paid for taxes = $40 − $22 − $6 − $2 − $4 = $6 million.
Operating cash flow, which measures the amount of cash generated by a company's normal business operations, is an important measure for determining the financial progress of its core business activities. It signifies whether a company can generate enough positive cash flow to sustain and grow its operations, or else external financing for capital expansion may be required.
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walden industries is being sued by a former employee for wrongful termination. it is probable that the company will lose the case and be ordered to pay the plaintiff a significant sum of money . if walden fails to report this information somewhere in its financial statements, it is violating the gaap concept of:
If Walden fails to report this information somewhere in its financial statements, it is violating the gap concept of Full disclosure.
What is gap concept?Gap concept evaluates the performance of business units to determine whether they are meeting business needs or objectives, and if not, what steps need to be taken to meet them It's a way.Gap concept is also known as needs analysis, requirements analysis, or needs gap analysis.A niche is an opportunity to offer something that the customer wants but the company does not currently offer. The term "Gap concept" refers to the difference between demand and supply relative to its supply.For example, if a company wants to launch a marketing campaign to improve its reputation or apply for credit, it will conduct a market gap analysis to determine the impact on the local economy and use that data as part of the campaign or credit application.To learn more about gap concept from the given link :
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Charging someone higher interest on a loan because they missed a payment in the past is.
The correct statement is that the charging of higher interest to a person missing a payment is known as risk-based lending and is not a secured form of a loan.
hazard-based lending happens whilst creditors provide clients distinctive hobby costs or other mortgage terms, primarily based on the expected chance that the consumers will fail to pay returned their loans. usually, banks and credit score unions decide loan hobby fees for the use of greater than just your credit score.
danger-primarily based lending is a method with the aid of which a credit score union may be able to extra effectively meet the credit score wishes of all its participants. It entails putting a tiered pricing structure that assigns loan quotes primarily based on a person's credit score chance. The hazard-primarily based Pricing Rule calls for you to inform purchasers if they're getting worse phrases due to data from their credit file.
risk-based lending is complex and calls for nicely-honed credit-granting skills. it can be an excessive-risk hobby that requires extra due diligence to correctly identify, degree, reveal and manipulate risk. chance-primarily based lenders can also find out that they underestimated the default risks and related collection expenses. credit score unions have to bear in mind the extra dangers inherent in risk-based totally lending and determine if those risks are desirable and controllable given the credit union’s personnel, financial situation, size, and stage of capital aid.
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Located on a college campus, howie's hot dog hut charges $3. 99 for its deluxe dog basket. However, students receive a 10 percent discount off the price for showing their student id. This is an example of.
Price discrimination is demonstrated by the discount given to students who purchase the hot dog.
How Does Price Discrimination Occur?Price discrimination is a marketing tactic where sellers charge clients various prices for the same good or service depending on what they believe will win the customer over. A merchant that practices pure price discrimination will impose the highest price possible on each customer. The more typical types of price discrimination involve the vendor classifying clients into groups according to particular characteristics and charging each group a different price.
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what is the marginal benefit of producing the third unit? number units produced total benefit total costs 0 0 0 1 100 50 2 180 110 3 250 180 4 290 270 5 310 380 multiple choice
The marginal benefit of producing third unit is 70.
What is marginal benefit?The marginal benefit of a good or service describes how much pleasure or satisfaction consumers experience when their consumption goes up or down by one unit. Marginal utility comes in three different forms. They have a marginal utility of either zero or a positive value. If you enjoy eating pizza, for example, eating two pieces will make you feel better than eating just one. It means you will receive a positive marginal utility from your pizza purchase. However, after consuming the second piece, you already feel full, and consuming the third piece would not make you feel any better. Therefore, eating pizza has no marginal benefit for you.
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Sport management and marketing agencies perform functions for industry stakeholder groups defined as?.
Sport management and marketing agencies perform functions for industry stakeholder groups defined as corporate brands.
What are Corporate Brands?Corporate branding is the process of presenting a company's image or identity to customers. Typically, a company's brand reflects its values, brand voice, and messaging. Building corporate brands is a common strategy used by marketing experts to show how they want the company to be seen.
Every successful business has a logo, a tagline, or other visual representation of its goods or services. These could take the shape of vows, customs, or identities.
For instance:
When we see the Apple logo, what do we think? Most likely, we can remember all of the brand's characteristics, including premium pricing, pricey phones, fast computers, innovation, consistency, Steve Jobs, etc.
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what are the weaknesses of the project team approach? multiple select question. it has lower levels of conflict. it is less expensive. it is characterized by difficulty in post-project transition. it limits technological expertise. it is expensive.
The weaknesses of the task group method is: B Limited technological expertise C it's miles high priced E hard submit task transition.
The required details for project team approach in given paragraph
Because specialized talents allude to the unique data and flair anticipated to attain complicated activities, errands, and cycles connecting with computational and real innovation simply as a one of a kind accumulating of various ventures. The whole-group method (group-primarily based totally method) is a fashion of task control wherein all of us at the task group is held similarly answerable for the best and fulfillment of the task. Agile software program development, Lean production, and innovative groups in marketing and marketing and different media frequently use the term.
A task method refers to the set of methods, practices, and procedures carried out to plan, control, and achieve a task. It is what lets in task managers to logically and systematically make selections to be able to circulate their task forward.
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if the actual economic surplus in the market represented by the graph is $3,075, what is the deadweight loss?
If the actual economic surplus in the market represented by the graph is $3,075, the deadweight loss will be $975.
The cost of market inefficiency, which happens when both supply and demand are not in balance, is known as a deadweight loss. A deadweight loss, a term mostly used in economics, refers to any deficit brought on by an ineffective resource allocation.
These elements cause goods to be overvalued or undervalued because the price of a product is not adequately reflected.
Deadweight losses may result from price floors, such as basic wage and living wage regulations, price ceilings like cost controls and rent restrictions, and taxation. A society's resource distribution could also become inefficient with a decline in commerce.
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if $5,000 is invested in an account at 4% annual interest compounded continuously, how much will be in the account in 8 years if no money is withdrawn?
If no money is withdrawn in 8 years there will be $6842.85
We have
A = [tex]P(1+r/n)^{nt}[/tex]
and we have,
Principal = $5000
Rate = 4%
Time = 8 years
n = 1 (compounded once a year)
A = 5000 (1 + 4/100)⁸
A = $6842.85
So there will be $6842.85 in the account.
Your principal is the sum that you get from a moneylender. The interest is the expense of getting that cash. Your month-to-month contract installment may likewise incorporate some taxes and protection. On the off chance that it does, your moneylender holds a level of your regularly scheduled installment in an escrow account. With regards to getting, the principal is the underlying size of a credit — it can likewise be the sum actually owed on a credit. In the event that you take out a $50,000 contract, for instance, the principal is $50,000. In the event that you pay off $30,000, the principal balance currently comprises the remaining amount which is $20,000.
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serie, a human resources manager at an advertising firm, is currently in the process of determining the value and worth of advertising executive positions within the agency. this is referred to as
This is referred to as job evaluation in which value determination of the advertising executive position internally is being done by Serie a human resource manager at an advertising firm.
Job evaluation is a process used by senior executive members of the company for determining the appropriate job rate for a certain position by comparing the job against other jobs within the organization. This evaluation process is generally done in the starting phase of creating a compensation system for an organization. This could be done by comparing within the agency (as historically being done) or outside the agency taking the open market and other organizations into consideration.
Point factor, factor comparison, job rankings, and job classification are some of the methods taken witing the agency by the human resource department.
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which of the following would tend to reduce effective capacity? multiple choice improved production quality greater variety in the product line suppliers that provide more reliable delivery performance reduced changeover times
A greater variety in the product line would tend to reduce the effective capacity.
What is an effective capacity?The quantity of work that a company can really complete in a particular time frame is known as effective capacity. This is because there are several limitations, including issues with quality, delays, material handling, etc. Additionally, the term is used interchangeably with capacity management in corporate computers and information technology. Planning for IT capacity include determining how much space, hardware, software, and connecting infrastructure will be needed in the future. The availability of the necessary resources to handle a rise in users or interaction volume is a common worry for businesses. Central processing units (CPUs), memory, and storage can all be added to a physical or virtual server as part of capacity management. Growing web applications vertically and traditionally has been done in this manner.
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what summarizes sources and uses of cash, indicates whether enough cash is available to carry on routine operations, and offers an analysis of all business transactions, reporting where the firm obtained its cash and how it chose to allocate the cash?
A company's working capital, or the amount of money available for operations and transactions, is determined by a cash flow analysis.
How is the process of promoting the sale of goods or services carried out?
The presentation and promotion of goods that can be purchased for both wholesale and retail sales is known as merchandising. This includes pricing competition, including discounts, display design, and marketing strategies.
What entails conducting an internal operation analysis for decision-making purposes?
The process of gathering, analyzing, refining, and recording information about business costs and operations for internal managerial use is known as management accounting.
Revenue. refers to the revenue generated by providing a service or delivering or manufacturing a product. sales. The capability of selling a decent or administration that spotlights on expanding client deals, which increments organization incomes. shareholder.
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when there is no cyclical unemployment in the economy, group of answer choices structural unemployment is zero. frictional unemployment is zero. unemployment is the sum of frictional and structural unemployment. unemployment is only structural unemployment.
When there is no cyclical unemployment in the economy, unemployment is the sum of frictional and structural unemployment. The correct answer would be option C.
Cyclical unemployment is a shortage of employment brought on by fluctuations in the business cycle of an economy. Losses of jobs during economic downturns or contractions are the main source of cyclical employment. This sort of unemployment can occur without a recession, which is when an economy experiences negative growth for two or more quarters in a row.
Short-term unemployment includes frictional unemployment. When someone actively seeks a job or a new career, they are said to be in a frictional state of unemployment.
Long-term unemployment brought on by changes in the economy is referred to as structural unemployment. Although there are open positions, there is a mismatch between what employers need and what the available workers can provide, leading to this type of unemployment.
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As the price of video games is raised from $20to $25, their quantity demanded fell from 1.5 million copies to 1 million copies. the price elasticity of demand for video games is:
a. -0.55
b. -1.8
c. -1.33
d. -2.08
In the following ways, demand for video games is elastic to price:
-1.33 for option (c).
Where Q and P are quantity and prices, respectively, elasticity is calculated as (Q2 - Q1)/Q1 divided by (P2 - P1)/P1. It will thus be (1-1.5)/1.5 divided by (25-20)/20. It will thus be (-0.5*20) / (1.5*5) = -1.33.
In economics, the quantity of an item that customers are willing and able to purchase at various prices during a certain time period is known as the demand. The demand curve This phrase describes the relationship between price and quantity and demand. How much of a certain product is in demand depends on a variety of factors, including perceived necessity, price, perceived quality, convenience, alternatives provided, customer preferences, disposable income, and a number of other elements.
The link between a good's quantity and its price
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if the vendor is willing to offer a discount of $10 per order for ordering in multiples of 50 units (e.g., 50, 100, 150), would you advise the manager to take advantage of the offer in either period? if so, what order size would you recommend? (round intermediate calculations to 2 decimal places.)
The manager should take advantage of the offer and order Q = 50 units during this six-month period and monthly demand is 93.33
What is monthly demand?Demand for a month (m) is equal to the monthly variation of the adjusted annual demand, which is specified as data under Monthly Demand Variation.
First six month, monthly demand = 560 / 6 = 93.33
1-6 months order size = √( 2 x A x O / C )
where O = Ordering cost per order
C = Carrying cost per order
monthly demand = √( 2 x 93.33 x 55 / 2 )
monthly demand = 71.65 or 72
7-12 months, monthly demand = 900 / 6 = 150
7-12 months order size:
monthly demand = √( 2 x A x O / C )
monthly demand = √( 2 x 150 x 55 / 2)
monthly demand = 90.83 or 91
B) First six-month period:
Monthly total cost =
(Q/2) x H + (d/Q) x S = (72 / 2) x 2 + (93.33 / 72) x 55 = $143.30
With discount of $ 10, S = $ 55 - $10 = $ 45
Monthly TC at Q = 50
= (50/2) x 2 + (93.33 / 50)x45 = $134.00
Monthly TC at Q = 100
= (100/2) x 2 + (93.33 / 100)x45 = $142.00
Monthly TC at Q = 150
= (150/2) x 2 + (93.33 / 150)x45 = $178.00
Conclusion:
Yes, the manager should take advantage of the offer and order Q = 50 units during this six-month period.
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states and mexico. mexican prices have been converted to u.s. dollars. u.s. market for strawberries price per pound quantity supplied (in millions) quantity demanded (in millions) $2 300 500 $3 350 450 $4 400 400 $5 450 350 $6 500 300 $7 550 250 $8 600 200 mexican market for strawberries price per pound quantity supplied (in millions) quantity demanded (in millions) $2 400 800 $3 450 750 $4 500 700 $5 550 650 $6 600 600 $7 650 550 $8 700 500 what is the equilibrium world price per pound? price per pound: 4 dollars what is the equilibrium quantity of exports and imports? equilibrium quantity: 6 million pounds which country will export strawberries?
The price per pound is $5 globally due to the supply and demand balance.
For $5, the US requests 350 but only obtains 450. Mexico asks for 650, but only gets 550. 100 million pounds are the equilibrium exports to Mexico at $5.
As a result, the US will ship 100 million pounds of strawberries to Mexico.
A commodity's equilibrium price is the one at which supply and demand are balanced. If the price is higher there will be more supply, and if the price is lower there will be more demand, and the markets will be out of equilibrium.
Both nations are a single market because there are no trade restrictions. The total supply and demand for each price level will be determined by adding the supply and demand in the two nations.
Price Supply Supply Supply Demand Demand Demand Market
USA Mexico Total USA Mexico Total Excess /
Deficit
2 300 400 700 500 800 1,300 -600
3 350 450 800 450 750 1,200 -400
4 400 500 900 400 700 1,100 -200
5 450 550 1,000 350 650 1,000 0
6 500 600 1,100 300 600 900 +200
7 550 650 1,200 250 550 800 +400
8 600 700 1,300 200 500 700 +600
Due to the equilibrium between supply and demand, the price per pound worldwide is $5.
The US wants 350 but only receives 450 for $5. Mexico requests 650 but only receives 550. Therefore, the equilibrium exports to Mexico at $5 are 100 million pounds. As a result, demand and supply are balanced in both nations.
Consequently, the US will send Mexico 100 million pounds of strawberries.
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