5. Ketchup is a complement for hot dogs. If the price of hot dogs rises, what happens to the market for ketchup? For tomatoes? For tomato juice? For orange juice? Please draw the diagram and show the change in equilibrium price and quantity for each market.(12%)

c.There are many banks, all of which make loans for the full amount of their excess reserves.

3. You are hired as the consultant to a monopolistically competitive firm. The firm reports the following information about its price, marginal cost, and average total cost. Can the firm possibly be maximizing profit? If not, what should it do to increase profit? If the firm is profit maximizing, is the firm in a long-run equilibrium? If not, what happen to restore long-run equilibrium? (12%) a.P<MC，P>ATC b.P>MC，P<ATC c.P= MC，P>ATC d.P>MC，P=ATC

(A) Draw Maria’s production possibilities frontier for reading economics and sociology.

(B) What is Maria’s opportunity cost of reading 100pages of sociology?

B. Given the following account information for Leong Corporation, all accounts have normal balances. Calculate the current ratio and the amounts of total equity for the company as of December 31, 2015. (5%) 

(a) Calculate the amount of each rent.

(b) How much interest revenue will Pine earn in 2017?

(a) Prepare the journal entry required on Dexter’s books on May 1.

(b) Prepare the journal entry required on Quick Finance’s books on May 1.

(c) Assume Dexter factors the $400,000 of accounts receivable with Quick Finance on a with recourse basis instead. Prepare the journal entry required on Dexter’s books on May 1