Rafael sold an asset to Jamal. What is Rafael's amount realized on the sale in each of the following alternative scenarios?
A. Rafael receives $80,000 of cash and a vehicle worth $10,000. Rafael also pays $5,000 in selling expense.
B. Rafael received $80,000 of cash and was relieved of a $30,000 mortgage on the asset he sold to Jamal. Rafael also paid a commission of $5,000 on the transaction.
C. Rafael received $20,000 of cash, a parcel land worth $50,000, and marketable securities of $10,000. Rafael also paid a commission of $8,000 on the transaction.

First scenario    amount realized is $85,000

Second scenario    amount realized is $105,000

Third scenario    amount realized is $72,000

Explanation:

first scenario:

Cash  proceeds  $80,000

vehicle worth       $10,000

selling expense   ($5,000)

Amount realized  $85,000

second  scenario:

Cash  proceeds        $80,000

mortgage relief        $30,000

selling commission   ($5,000)

Amount realized        $105,000

Third scenario:

Cash  proceeds        $20,000

land worth                $50,000

Marketable securities $10,000

selling commission   ($8,000)

Amount realized        $72,000

The second option is the most beneficial as the benefits of $105,000 is more than the amount realized on other options

answer: in the short-run firms will respond by raising the price of turkey.

explanation: initially the long-run equilibrium is at a price of $5 per pound of turkey and a quantity of 50 million pounds per year. now, when webmd claims that a protein found in turkey will increase your expected lifespan by 4 years. the consumers demand for turkey will increase at every price shifting the demand curve to the right from d1 to d2. while, there will be no change in the supply curve in the short-run as it is not possible for producers to adjust supply so quickly. as a result the new equilibrium will occur at a higher price and a higher quantity of turkey.

thus, in the short run firms will respond by increasing the price of turkey, selling more quantity at a higher price and earning economic profits.