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gogolik [260]
2 years ago
6

Consumer A and Consumer B live in the same state where a sales taxes increase of 1% on all items has been enacted Consumer A has

an income of $50,000 per year and Consumer B has an income of \$250,000 per year. Choose all scenarios that correctly describe the effects of the sales tax increase on Consumer A versus Consumer B.
Business
2 answers:
mel-nik [20]2 years ago
8 0

Customer A would be much worse off as a result of the sales rate increase than Customer B.

Customer B will face fewer negative opportunity costs as a result of the sales raising taxes than Consumer A.

Customer A sales tax rate <u>rises </u>of 2% on a $10,000 car buy equals 2% of Consumer A's income, but only 4% of Consumer B's revenue.

Learn more:

brainly.com/question/19715580?referrer=searchResults

nikitadnepr [17]2 years ago
5 0

Answer:

A,C, and E

Explanation:

usa test prep

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A professor wanted to compare two types of teaching styles. One type is by tutorials and the other is giving a lecture. It is a
Damm [24]

Answer:

The following are the answer to this question:

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In option D, The answer is students.

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3 years ago
_____ is the amount of information a communication medium can carry and the extent to which the medium enables the sender and re
asambeis [7]

Answer:

Information richness.

Explanation:

<u>Information richness</u> is the amount of information a communication medium can carry and the extent to which the medium enables the sender and receiver to reach a common understanding. This is the correct answer to your question.

Hope this helps!!!

Kyle.

8 0
3 years ago
During the last half of 2008, the Fed seemed to take "baby steps" in reducing the federal-funds rate target, before finally lowe
emmasim [6.3K]

Answer:

Why can't the Fed push the rate any lower than zero?

Real interest rates can be lower than zero, or negative (because inflation rate is higher than interest rate), but nominal interest rates are generally only limited to zero. But during this same time, the European Central Bank actually started paying negative interest rates on money deposits and many European private banks followed. That means that they charged people for having their money on the bank.

Why do you think that the Fed was so seemingly reluctant to push the rate all the way to the floor?

The reason why the Fed was not willing to push the interest rates to zero or even below zero was that by doing so, the US dollar would have depreciated or lost value. In Europe this was done to encourage people to spend their money and not save as much, but in the US that is not really a problem. Generally in the US the problem is that people spend too much and save too little, but on some European countries and Japan, people tend to save too much. For example in Japan the national savings rate fluctuates between 22-40%, while the maximum savings rate in the US has been 10.4% in 1960, it currently is around 7.6%.

4 0
3 years ago
You were hired as a consultant to Quigley Company, whose target capital structure is 35% debt, 10% preferred, and 55% common equ
alexgriva [62]

Answer:

A. 8.15

Explanation:

WACC is the firm's weighted average cost for the capital that is employed from different sources which includes common equity, preferred equity and debt.

In order to calculate WACC, the weighted average cost of each capital is added, so the formula becomes:

WACC = (E x %E) + (D x (1 - Tax) x %D) + (PE x %PE)

E = Common equity

D = Debt

PE = Preferred equity

%E = Common equity / total capital

%D = Debt / total capital

%PE = Preferred equity / total capital

Tax = Tax rate

<em>Interest on debt is a tax deductible expense therefore the interest rate is taken after accounting for tax in order to calculate WACC.</em>

<u>Calculation:</u>

Using the above formula we can calculate WACC

WACC = (11.25% x 55%) + (6.5% x (1-40%) x 35%) + (6% x 10%)

WACC = 0.0815 or 8.15%

7 0
3 years ago
The Country Music Hall of Fame is considering increasing admission prices to increase gross revenue. If the price of admission r
Kitty [74]

Answer:

1

Explanation:

Elasticity of demand measures the responsiveness of quantity demanded to changes in price.

Elasticity of demand = percentage change in quantity demanded / percentage change in price

Percentage change in quantity demanded = (30/20) - 1 = 0.5 = 50%

Percentage change in price = (1500 / 3000) - 1 = 0.5 = 50%

50% / 50% = 1

I hope my answer helps you

3 0
3 years ago
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