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2 years ago

why the introduction of maximum prices in the petrol industry will not be an ideals decision for the country's economy

1 answer:

3 0

The introduction of maximum prices in the petrol industry will not be an ideals decision for the country's economy because

a) if the maximum price is less than the equilibrium price, then it will cause a shortage in supply.

b) Petrol is essential for daily lives, without maximum pressure some people may not be able to buy the product.

<h3>What is Economy?</h3>

An economy is the large set of inter-related production, consumption, and exchange activities that aid in determining how scarce resources are allocated. It is defined as the management of financial matters for a community, business or family.

The economy of a country or region is the system by which money, industry, and trade are organized.

Learn more about economy here,

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Allison engines corporation has established a target capital structure of 40 percent debt and 60 percent common equity. the firm

mariarad [96]

Answer: $100,000

Explanation: Allison engines corporation has a profit of $150,000 after Tax.

Rate of retained earning : 40%

Retained earnings : $150,000 × 40% = $60,000

Percentage of equity in the capital is 60%

Break even point of retained earnings = Retained Earnings ÷ Percentage of equity in the capital

Break even point of retained earnings = $60,000 ÷ 0.6

Break even point of retained earnings = $100,000

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3 years ago

Which of the following statements about the relationship between the financial market and the economy is true?

azamat

I believe the answer is b. However I'm not quite sure. I think b would be the most reasonable answer.

7 0

4 years ago

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The downward slope of a demand curve illustrates the pattern that as ________ decreases, ________ increases.

Lelechka [254]

Potential energy, kinetic energy

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3 years ago

Suppose that Dunkin Donuts reduces the price of its regular coffee from $2 to $1 per cup, and as a result, the quantity sold per

harkovskaia [24]

Answer:price elasticity of demand for Dunkin Donuts’ regular coffee is 1.8

Explanation: Using the midpoint formnulae

Price elasticity of Demand =percentage change in quantity demanded/ Percentage change in price.

Percentage change in quantity = new quantity - old quantity / (new quantity + old quantity)/2 x 100

= 40-10/(40+10)/ 2 = 30 /25 = 1.2 x 100 =120%

Percentage change in price = new price - old price / new price + old price)/2 x 100

= 1- 2 / (1+2)/2= -1/1.5x 100 = -66.67 %

Price elasticity of Demand =percentage change in quantity demanded/ Percentage change in price.

= 120%/-66.67%= -1.79 = -1.8

For Price elasticity of demand, the sign is not included and the basis for elasticity is on the value itself . here we can conclude that the Price elasticity of demand for Dunkin donut is 1.8 and elastic because a fall in price led to an increase in amount being sold.

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3 years ago

A summary of cash flows for Adventure Travel Service for the year ended April 30, 2019, follows:

zalisa [80]

Answer:

Adventure Travel Service

Statement of cash flows for the year ended April 30, 2019

Cash flow from Operating Activities

Cash receipts from customers $2,080,000

Cash payments for operating expenses ($1,706,000)

Net Cash from Operating Activities $374,000

Cash flow from Investing Activities

Purchase of land ($400,000)

Net Cash from Investing Activities ($400,000)

Cash flow from Financing Activities

Cash receipt from owner as investment $60,000

Drawings ($40,000)

Net Cash from Financing Activities $20,000

Movement in Cash and Cash Equivalents ($6,000)

Beginning Cash and Cash Equivalents $203,000

Ending Cash and Cash Equivalents $197,000

Explanation:

The Statement of Cash flows shows the results of cash from the following sources : Cashflow from Operating Activities, Cashflow from Investing Activities and Cashflow from Financing Activities.

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3 years ago

why the introduction of maximum prices in the petrol industry will not be an ideals decision for the country's economy​

why the introduction of maximum prices in the petrol industry will not be an ideals decision for the country's economy