Answer:
d) 110; 180
Explanation:
Price ceilings is put in place to ensure a price does not rise above a particular level.
When a price ceiling is below the equilibrium price, the quantity demanded for will e greater than quantity supplied, and excess demand will arise.
original equilibrium of $12
180 units would be exchanged in a free market (when equilibrium price is $12), and 110 units would be exchanged with the price ceiling in effect.
Answer:
- <em>The cash flow stream from investment X has higher present value than the the cash flow stream from investm Y.</em>
Explanation:
<u></u>
<u>1. Present value of investment X</u>
- Annual payment: C = $4,200
- Number of years: t = 8
- Rate: r = 5%
- PV₁ = ?
Formula:
![PV=C\times [\dfrac{1}{r}-\dfrac{1}{r(1+r)^t}]](https://tex.z-dn.net/?f=PV%3DC%5Ctimes%20%5B%5Cdfrac%7B1%7D%7Br%7D-%5Cdfrac%7B1%7D%7Br%281%2Br%29%5Et%7D%5D)
Substitute and compute:
![PV_1=\$ 4,200\times [\dfrac{1}{0.05}-\dfrac{1}{0.05(1+0.05)^8}]](https://tex.z-dn.net/?f=PV_1%3D%5C%24%204%2C200%5Ctimes%20%5B%5Cdfrac%7B1%7D%7B0.05%7D-%5Cdfrac%7B1%7D%7B0.05%281%2B0.05%29%5E8%7D%5D)
<u>2. Present value of investment Y</u>
- Annual payment: C = $6,100
- Number of years: t = 5
- Rate: r = 5%
Formula:
Substitute and compute:
![PV_2=\$ 6,200\times [\dfrac{1}{0.05}-\dfrac{1}{0.05(1+0.05)^5}]](https://tex.z-dn.net/?f=PV_2%3D%5C%24%206%2C200%5Ctimes%20%5B%5Cdfrac%7B1%7D%7B0.05%7D-%5Cdfrac%7B1%7D%7B0.05%281%2B0.05%29%5E5%7D%5D)
Hence, the cash flow stream from investment X has higher present value than the the cash flow stream from investm Y.
A private company, the company's stock, or its net is spread amongst few people, usually people close to the CEO/Owner.
A public company, the company's stock is available to purchase to anyone, and can be spread world wide.
Answer: Average profit
Explanation:
Both average profit and profit margin show the percentage of profit that a company can expect to receive from $1 worth of sales. It is calculated by dividing the profits by the sales figure,
If sales are $10 and profits are $3, the profit margin would be:
= 3/10
= 30%
This means that for every $1 of sales, there is $0.30 in profit. This method shows us whether the total profit will be negative or positive by showing us individual product profit.
Answer:
C. Efficiency and equity.
Explanation:
In designing a tax system, their are many factors that can easily stand out to be hindrances seen to be present; here it could be the policymakers, law enforcement agencies, the financial institutes etc. But in the case above, the main focus is seen to be on the policymakers.
Here, there are to main objectives that are seen and observed according to research to be the two main factors that are conflicting between policymakers which are their efficiency and also their equity. Therefore, to easily set the public and private investment, government taps tax revenues.
