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1 year ago

Suppose the government in your city imposes a $0.50 excise tax on gasoline. the burden of this tax falls on:_____.

1 answer:

4 0

Let's say that gasoline is subject to a $0.50 excise tax in your city. This tax affects both buyers and sellers equally.

Depending on the elasticity of demand and supply, a tax's burden is split between purchasers and sellers. Depending on their alternatives, buyers' and sellers' desire to exit the market is represented by elasticity. The relationship between supply and demand price elasticity and tax incidence is also possible. The tax burden is placed on the purchasers when supply is more elastic than demand. The cost of the tax will be borne by the producers if demand is more elastic than supply.

Learn more about the burden of this tax here.

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When valuing a stock using the constant-growth model, d1 represents the?

Minchanka [31]

When valuing a stock using the constant-growth model, D1 represents the next expected annual dividend. The constant-growth model is formally known as the Gordon Growth Model. This model shows the intrinsic value of stock based on dividends in the future if they are growing at a constant rate. Instrinsic value is the value of something based on anaylsis without accounting for the market value.

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2 years ago

William wants to have a total of $8000 in two years so that he can put a hot tub on his deck. He finds an account that pays 5% i

aev [14]

He needs to put 7600

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3 years ago

for a monopolist: a. price equals average total cost. b. price is above marginal revenue. c. marginal revenue equals zero. d. ma

strojnjashka [21]

For a monopolist b. price is above marginal revenue.

<h3>What Is Marginal Revenue? </h3>

Marginal revenue can be regarded as increase in revenue which is been gotten from the sale of one additional unit of output.

As a monopolist that is the the only seller in the market, then their marginal revenue is usually above price because they don't have a competitor that is close enough.

Read more on Marginal Revenue here:

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8 0

1 year ago

Delish Foods sells jars of special spices used in Italian cooking. The variable cost is $2 per unit. Fixed costs are $9,000,000

Ymorist [56]

Answer:

$3.38 per unit

Explanation:

Total costs:

= Total fixed cost + Total variable cost

= $9,000,000 + (5,000,000 units × $2 per unit)

= $9,000,000 + $10,000,000

= $19,000,000

Target revenue:

= Total costs - Desired profit

= $19,000,000 - ($42,000,000 × 5%)

= $19,000,000 - $2,100,000

= $16,900,000

Sales price per unit = Target revenue ÷ Total units

= $16,900,000 ÷ 5,000,000

= $3.38 per unit

8 0

2 years ago

Total assets of Charter Company equal $700,000 and its equity is $420,000. What is the amount of its liabilities? b. Total asset

guajiro [1.7K]

Answer:

a. Total liabilities = $280,000

b. Total liabilities = $250,000

Total equity -= $250,000

Explanation:

As we know that

Total assets = Total liabilities + shareholder equity

So in the first case

The amount of the liabilities is

Total liabilities = Total assets - Total equity

= $700,000 - $420,000

= $280,000

And, in the second case, the total assets is $500,000

And, the liabilities and equity amounts are equal to each other

So in this case, the liabilities is $250,000 and the equity is $250,000

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2 years ago