Assume that the initial market clearing price for milk is $2 per gallon. Now suppose that a reduction in the stock of dairy cattle has caused a leftward shift in the supply of milk, resulting in an increase in the market price to $4 per gallon. Using the midpoint method, calculate the price elasticity of demand over this range. Is it elastic, unit elastic, or inelastic over this range?

On january 15, the end of the first biweekly pay period of the year, north company’s payroll register showed that its employees earned $32,000 of sales salaries. withholdings from the employees’ salaries include fica social security taxes at the rate of 6.2%, fica medicare taxes at the rate of 1.45%, $3,000 of federal income taxes, $772 of medical insurance deductions, and $260 of union dues. no employee earned > $7,000 in this first period. prepare the journal entry to record north company’s january 15 (employee) payroll expenses and liabilities.