Answer:
D. Dynamic forecasts of incremental tax revenues must consider the potential income effect but not the potential substitution effect of a rate increase.
Explanation:
This is because, an increase in taxes would affect the incomes of the people thereby decreasing the disposable income available to people while on the other-hand, there will be no substitution available for them unlike if the situation where to be with regards to goods and services.
Answer:
a) see attached graph. There is nothing unusual with the supply curve, it is simply fixed. This happens to most services, e.g. there is a fixed number of hotel rooms available for rent, in the short run you cannot add more rooms per night if the demand increases. In order to increase the quantity supplied, you would need to build a larger hotel, or in this case, a larger stadium.
b) the equilibrium price is $8 and the equilibrium quantity is 8,000 tickets
c) if the college plans to increase enrollment, the demand might increase, leading to a higher equilibrium price, but the supply will remain the same until the stadium is expanded.
Explanation:
Price Quantity Demanded (Qd) Quantity Supplied (Qs)
$4 10,000 8,000
$8 8,000 8,000
$12 6,000 8,000
$16 4,000 8,000
$20 2,000 8,000
Answer:
The answer is $610,000
Explanation:
Impairment charge is made on an asset whenever the fair value(most times fair value less cost to sales is less than the carrying value).
And under US GAAP, if the fair value is less than future net cash flow from the equipment.
So back to the question;
Fair value is $2,040,000
Future cash flow is $2,650,000
Impairment charge is therefore,
$2,650,000 - $2,040,000
$610,000
Lyft raises ride-sharing fares when more people need rides and vice versa. This is referred to as Surge pricing. Hence option D is correct.
<h3>What does pricing stand for?</h3>
Pricing is the process of determining the value that a manufacturer will receive in exchange for their goods and services. The producer uses a pricing strategy to make the cost of its products suitable for both the manufacturer and the consumer.
When a business increases the price of a good or service when demand is high and lowers prices when demand is low, this practice is known as "surge pricing."
Hence option d is correct.
Learn more about Surge pricing:
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Debt financing takes place when a company raises money by selling debt instruments to investors.
<h3>
What is debt financing?</h3>
Your information is incomplete. Therefore, an overview of debt financing will be given. Debt financing simply occurs when a firm sells fixed income products, like bonds, bills, or notes.
Debt financing is the opposite of equity financing. The main advantage of debt financing is that the business owner doesn't give up any control of the business.
Learn more about debt on:
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