The market for whisky in Scotland is described by the following demand and supply equations: Demand:
D=80−P
Supply:
S=−40+2P

where P is the price of a liter of whisky, and is the number of liters sold per week, in thousands. Suppose the Scottish government mandates a price of £60 per liter.

Required:
Is the market in equilibrium?

a. The market is in equilibrium because at £60 per liter, quantity supplied equals quantity demanded.
b. The market is in equilibrium because the price of £60 per liter is a fair price for society.
c. The market is not in equilibrium because any price set by the government cannot be an equilibrium price.
d. The market is not in equilibrium because at £60 per liter, quantity supplied does not equal quantity demanded.

Gideon company uses the allowance method of accounting for uncollectible accounts. on may 3, the gideon company wrote off the $2,200 uncollectible account of its customer, a. hopkins. on july 10, gideon received a check for the full amount of $2,200 from hopkins. the entry or entries gideon makes to record the write off of the account on may 3 is:

Anew equipment has been proposed by engineers to increase the productivity of a certain manual welding operation. the investment cost is $25,000, and the equipment will have a market value of $5,000 at the end of a study period of five years. increased productivity attributable to the equipment will amount to $10,000 per year after operating costs have been subtracted from the revenue generated by the additional production. if marr is 10%, is investing in this equipment feasible? use annual worth method.

Consider the market for gasoline. suppose that, in a competitive market without government regulations, the equilibrium price of gasoline is $3.00 per gallon, and employees at gas stations earn $17.50 per hour. complete the following table by indicating whether each of the statements is an example of a price ceiling or a price floor and whether it results in a shortage or a surplus or has no effect on the price and quantity that prevail in the market. statement price control effect the government has instituted a legal minimum price of $3.40 per gallon for gasoline. the government prohibits gas stations from selling gasoline for more than $3.40 per gallon. due to new regulations, gas stations that would like to pay better wages in order to hire more workers are prohibited from paying more than $14.50 per hour.