In order to determine the effect of the tax on the demand and supply graph, please check the attached image.
A tax is a form of transfer to wealth from businesses to the government. Taxes increase the price of goods and services. As a result of the tax levied on the producers of automobile tires, the cost of making tires would increase. This would make producing tires more expensive.
As a result of the increase in the cost of making tires, the production of tires would fall. As a result, there would be a leftward shift of the supply curve. This would lead to a rise in equilibrium price and a decrease in equilibrium quantity.
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Answer:
B. $500,000
Explanation:
In this question, we have to apply the GDP formula which is given below:
GDP = Cost of total produced cars - imports
where,
Cost of total produced cars would be
= Number of cars produced × price per car
= 30 cars × $20,000
= $600,000
And, the imports would be $100,000
So, the GDP would be
= $600,000 - $100,000
= $500,000
Answer:
the same as using the incremental cost approach
Explanation:
There are two approaches to compare rival investment proposals using the net present value method (npv comparison). The total cost method as well as the incremental cost strategy are two different approaches. The total cost method has the distinct benefit of allowing an unlimited number of choices to be evaluated side by side to find the optimal course of conduct.
