Analyze the transactions of a business organized as a proprietorship described below and indicate whether the transaction increased, decreased or increased and decreased the accounting equation.

An accounting transaction is a business activity or event that causes a measurable change in the accounting equation is described below.

Explanation:

Owner's Equity Assets Liabilities Decreased Increased Received cash for services rendered Increase Decreased -Purchased office equipment on credit Increased Decreased Paid employees salaries. Decreased increased Received cash from customer in payment on account Decreased d Paid telephone bill for the month. Decreased Paid for office equipment purchased in transaction  Decreased Purchased office supplies on credit. Increased and decreased Decreased Increased Owner withdrew cash for personal expenses Decreased Increased Obtained a loan from the bank Increased Purchased office equipment on credit ed increased Decreased Paid employees salaries Received cash from customer in payment on account.Paid for office equipment purchased in transaction 2 DecreasesPurchased office supplies on credit. Decreased Owner withdrew cash for personal expenses. creased increased Obtained a loan from the bank Increased Billed customers for services rendered. Increased Increased

A) The deadweight loss will be greater when the absolute value of price elasticity of demand = 0.3

B) The deadweight loss is bigger when the value of Nd is larger and also

since a $2 tax per unit results in a deadweight loss of $100 the deadweight loss for a $4 tax per unit will be 2 times larger  i.e. $200

Explanation:

A) Given

price elasticity of supply (Ns)= 0.6

absolute value of elasticity (Nd) = 0.3

absolute value of elasticity 2 ( Nd ) = 1.5

we will apply the deadweight rule here

DWL = -0.5*(Ns Nd)/(Ns - Nd ) * (t^2) * Q/P

For;

( Nd = 0.3 ) = -0.5*( 0.6*0.3) / (0.6-0.3 ) * 2^2

                  = - 0.5 * ( 0.18 / 0.3 ) * 4 = -1.2

( Nd = 1.5 ) = -0.5*(0.6*1.5 )/( 0.6 - 1.5 ) * 2^2

                 = -0.5 * ( 0.9 ) / (-0.9) * 4 = 2

The deadweight loss will be greater when the absolute value of price elasticity of demand = 0.3

B) The deadweight loss is bigger when the value of Nd is larger and also

since a $2 tax per unit results in a deadweight loss of $100 the deadweight loss for a $4 tax per unit will be 2 times larger  i.e. $200