1. Winston is disappointed in the new SUV he recently purchased. He was excited about the new technology incorporated in his SUV but they did not live up to his expectations; therefore, please illustrate by constructing a supply and demand graph, the direction in which the curves will shift and state the new equilibrium price and quantity; for example, state whether price and quantity increased, decreased, or are indeterminate. Please explain your rationale based on the determinants of demand and supply.

   

Transcribed Image Text:

Company purchases Deluxe machine for $52,000. It has an estimated salvage value of $2,000 and a useful life of four years. Company calculates the annual straight-line depreciation for the machine. What is yearly depreciation amount of the machine. Answer: Company purchases Deluxe machine for $52,000. It has an estimated salvage value of $2,000 and a useful life of four years. Company calculates the annual straight-line depreciation for the machine. What is yearly depreciation amount of the machine. Answer: