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2 years ago

If a seller facing excess demand is unable to raise the price of the good due to a price ceiling, a likely result will be:

Business

1 answer:

Anuta_ua [19.1K]2 years ago

3 0

A likely result will be a decrease in the quality of a product.

The fee ceiling is a state of affairs while the price charged is greater than or less than the equilibrium fee decided with the aid of market forces of demand and deliver. It's been found that higher price ceilings are useless. price ceiling has been discovered to be of extraordinary importance within the residence rent marketplace.

A price ceiling is a legal maximum rate that one will pay for some good or carrier. A government imposes rate ceilings as a good way to preserve the price of some necessary precise or services low-cost. as an example, in 2005 at some stage after Hurricane Katrina, the price of bottled water expanded above $five according to the gallon.

A rate ceiling continues a fee from growing above a sure level (the “ceiling”), even as a fee ground continues a rate from falling underneath a given degree (the “ground”). This phase uses the call for and delivers a framework to research price ceilings. the following section discusses rate flooring.

Learn more about the price ceiling here brainly.com/question/1448982

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Calamata Corporation processes a single material into three separate products A, B, and C. During September, the joint costs of

Elena-2011 [213]

Answer:

20%

Explanation:

Gross profit is the net of sales and cost of sales. Gross Profit percentage is the ratio of gross profit to sales expressed as percentage.

Product Units Produced Final Sales Value per Unit Separate Costs

A 10,000 $25 $125,000

B 15,000 $30 $250,000

C 12,500 $24 $125,000

Total 37,500 $500,000

Sales Value

A (10,000 x $25) $250,000

B (15,000 x $30) $450,000

C (12,500 x $24) $300,000

Total Sales Value $1,000,000

Less

Joint Cost ($300,000)

Separable cost ($500,000)

Gross Profit $200,000

Gross Profit Percentage = ( $200,000 / $1,000,000 ) x 100 = 20%

8 0

3 years ago

Which is not an example of a behavior exhibited in a market economy?

Diano4ka-milaya [45]

Answer: market economy’s do not have government interference in businesses

Explanation:

5 0

3 years ago

Franklin Manufacturing provided the following information for the month ended Marchâ 31:

Alexxx [7]

Answer:

a. Cost of Goods Sold (COGS) amounts to $21,100

Explanation:

Computing the Cost of Goods Available for Sale as:

Cost of Goods Available for Sale = Beginning Finished Goods Inventory + Cost of Goods Manufactured

where

Cost of Goods Manufactured is $18,600

Beginning Finished Goods Inventory is $15,000

So, putting the values above:

Cost of Goods Available for Sale = $18,600 + $15,000

Cost of Goods Available for Sale = $33,600

Computing the COGS (Cost of Goods Sold) as:

Cost of Goods Sold (COGS) = Cost of Goods Available for Sale - Ending Finished goods Inventory

where

Cost of Goods Available for Sale is $33,600

Ending Finished goods Inventory is $12,500

So, putting the values above:

Cost of Goods Sold (COGS) = $33,600 - $12,500

Cost of Goods Sold (COGS) = $21,100

4 0

4 years ago

At the beginning of the month, the Painting Department of Skye Manufacturing had 30,000 units in inventory, 70% complete as to m

VikaD [51]

Answer:

Cost per equivalent unit of material = $2.20 per unit

Cost per equivalent unit of conversion = $4 unit

Explanation:

The computation of Cost per equivalent unit of material, Cost per equivalent unit of conversion is shown below:-

For computing the cost per equivalent first we need to find the equivalent unit of material which is below:-

= Transferred units + ( Department units × Material percentage)

= 135,000 + (20,000 × 40%)

= 135,000 + 8,000

= 143,000

So, the Cost per equivalent unit of material = (Beginning material cost + Current month material cost) ÷ Equivalent unit of material

= ($32,400 + $282,240) ÷ 143,000

= $314,640 ÷ 143,000

= $2.20 per unit

Now, For computing the Cost per equivalent unit of conversion first we need to find the equivalent unit of conversion cost which is below:-

= Transferred units + ( Department units × Conversion percentage)

= 135,000 + (20,000 × 15%)

= 135,000 + 3,000

= 138,000

So, the Cost per equivalent unit of conversion = (Beginning conversion cost + Current month conversion cost) ÷ Equivalent unit of conversion cost

= ($6,250 + $544,700) ÷ 138,000

= $550,950 ÷ 138,000

= 3.99

or $4 unit

8 0

3 years ago

6 . How shifts in demand and supply affect equilibrium Consider the market for pens. Suppose that the number of students with an

Tresset [83]

Answer:

Suppose that the number of students with an allergy to pencil erasers increases, causing more students to switch from pencils to pens in school.

This will shift the demand curve to the right, increasing the total demand at all price levels.

Moreover, the price of ink, an important input in pen production, has increased considerably.

This will shift the supply curve to the left, increasing the price of pens at every demand level.

What is sure is that the price of pens will increase. It is likely that the quantity demanded increases, but the extent by which the quantity demanded will increase is unknown.

5 0

3 years ago