Jane and joseph sechrist signed a contract to have a swimming pool built in their backyard for $10,000. the salesman for the pool company signed the contract as well on a space marked "salesperson." two days after the contract was signed, the salesman called the sechrists back and asked them to come in and sign a new contract for $11,000 because the vice president had not approved the original price. jane has checked the contract and discovered that there is no language that requires the approval of anyone other than the salesperson. jane and joseph can have their pool built for $10,000 because:

Carver company produces a product which sells for $30. variable manufacturing costs are $15 per unit. fixed manufacturing costs are $5 per unit based on the current level of activity, and fixed selling and administrative costs are $4 per unit. a selling commission of 10% of the selling price is paid on each unit sold. the contribution margin per unit is:

technology is the application of knowledge and tools to solve problems and perform tasks more efficiently. t/f

Aprice ceiling is “binding” if the price ceiling is set below the equilibrium price. suppose that the equilibrium price is $5. if a price ceiling is set at $6, this will not affect the market in any way since $5 remains a legally allowable price (since $5 < $6). a price ceiling of $6 is called a “non-binding” price ceiling. on the other hand, if the price ceiling is set at $4, the price ceiling is “binding” because the natural equilibrium price is $5 but that is no longer allowed. what happens when there is a binding price ceiling? at a price below the equilibrium price, quantity demanded exceeds quantity supplied. there is a shortage. normally, price increases eliminate shortages by increasing quantity supplied and decreasing quantity demanded. in this case, however, price increases are not allowed past the price ceiling. we therefore predict that the observed market price will be right at the price ceiling and there will be a permanent shortage. the observed quantity bought and sold will be dictated by the quantity supplied at the price ceiling. although consumers would like to buy more, there are no more units for sale