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2 years ago

What would be the effect of a decrease in government taxes on a good's supply curve, ceteris paribus?

1 answer:

3 0

What would be the effect of a decrease in government taxes on a good's supply curve, ceteris paribus shift to the right

Supply curve shift:

Changes in production cost and related factors can cause an entire supply curve to shift right or left. This causes a higher or lower quantity to be supplied at a given price.

A supply curve shows how quantity supplied will change as the price rises and falls, assuming ceteris paribus—no other economically relevant factors are changing. If other factors relevant to supply do change, then the entire supply curve will shift. A shift in supply means a change in the quantity supplied at every price.

The ceteris paribus assumption :

A demand curve or a supply curve is a relationship between two, and only two, variables: quantity on the horizontal axis and price on the vertical axis. The assumption behind a demand curve or a supply curve is that no relevant economic factors, other than the product’s price, are changing.

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4 years ago

John has just paid off the full balance of his credit card. What happens to the

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3 years ago

The difference between actual and standard cost caused by the difference between the actual quantity and the standard quantity i

victus00 [196]

Answer:

Quantity variance.

Explanation:

The difference between actual and standard cost caused by the difference between the actual quantity and the standard quantity is called the Quantity variance.

For instance, if Tony needs a standard quantity of 50 pounds of iron to construct a burglary, but only used 51 pounds, then the quantity variance is 1 pound of iron.

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3 years ago

Prextos Corp., after incurring losses, decides to move its manufacturing unit to a foreign location where it would get labor at

Darya [45]

Answer:

Offshoring

Explanation:

offshoring is the process of moving an aspect of a business process overseas with the intention of reducing cost.

A firm can move its manufacturing process from its own parent country to another country (usually where the labour rate and cost of raw materials is cheap compared to what it obtainable in its home country) in other to reduce its cost of production thereby increasing its added value.

From the above explanation, we can conclude that Prextos is planning to employ Offshoring to cut down losses.

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3 years ago

Describe the two primary functions of financial accounting

andreev551 [17]

Answer: Measurement and presentation of financial performance

Explanation: The two primary functions of financial accounting are measurement and presentation of financial performance.

The measurement function is performed by following accounting procedures and policies under US GAAP and IFRS.

Whereas, presentation function relates to preparation of financial statements like income statement and cash flow statement.

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4 years ago