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Mumz [18]
1 year ago
12

When a tax distorts incentives to buyers and sellers so that fewer goods are produced and sold, the tax has.

Business
1 answer:
Dmitry_Shevchenko [17]1 year ago
8 0

When a tax distorts incentives to buyers and sellers so that fewer goods are produced and sold, the tax has caused a deadweight loss.

<h3>What is meant by deadweight loss?</h3>
  • The gap between the production and consumption of any given good or service, including taxes, is referred to as deadweight loss in economics. Deadweight loss is most frequently detected when the quantity generated compared to the quantity consumed deviates from the ideal surplus concentration.
  • Overproduction of commodities results in a loss of money. For instance, a baker might only sell 80 of the 100 loaves of bread they produce. There will be a deadweight loss since the 20 remaining loaves will become moldy and dry, and they will need to be thrown away.
  • The loss in economic activity that results when the market pricing of products or services change negatively affects consumers and businesses is referred to as deadweight loss.
  • You need to know the change in price and the change in quantity demanded in order to compute deadweight loss. Deadweight Loss is calculated using the following formula:. 5 * (P2 - P1) * (Q1 - Q2).

When a tax distorts incentives to buyers and sellers so that fewer goods are produced and sold, the tax has caused a deadweight loss.

To learn more about deadweight loss, refer to:

brainly.com/question/21335704

#SPJ4

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A company's beginning Equipment account is $100,000. It purchased $10,000 of new equipment and sold $4,000 of its equipment duri
tankabanditka [31]

The company's ending Equipment balance equals a $106,000 balance.

<h3>Ending Equipment balance</h3>

Using this formula

Ending Equipment balance= Beginning Equipment balance+New equipment- Ending Equipment balance

Where:

Beginning Equipment balance=$100,000

New equipment=$10,000

Ending Equipment balance=$4,000

Let plug in the formula

Ending Equipment balance=$100,000+$10,000-$4,000

Ending Equipment balance=$106,000

Inconclusion the company's ending Equipment balance equals a $106,000 balance.

Learn more about ending Equipment balance here:brainly.com/question/24401217

8 0
2 years ago
Barb bought a house with 20% down and the rest financed by a 30-year mortgage with monthly payments calculated at a nominal annu
lina2011 [118]

Answer:

$282,706

Explanation:

Calculation to Determine the purchase price of the house

First step

In order for us to determine the purchase price of the house we would be using TVM Calculation to find the PMT

Hence,

PMT =

PV = 200,000

FV = 0

N = 240

I = 0.084/12

Thus,PMT = $1,723.01

The Second step will be to Calculate the Loan Amount Using TVM Calculation,

PV =

FV = 0

PMT = -1,723.01

N = 360

I = 0.084/12

Thus, PV = $226,164.98

Last step is to Determine the purchase price of the house

Using this formula

Purchase price=PV/(100%-20% down)

Let plug in the formula

Purchase price =226,164.98/(0.80)

Purchase price = $282,706

Therefore the purchase price of the house will be $282,706

5 0
3 years ago
The President of a company that produces an electronic gadget and sells it in a competitive market observed that the demand for
UkoKoshka [18]

Answer and Explanation:

The computation is shown below:

Demand is

P = 10 - 0.2Qd

And

supply is

P = 0.2QS

Now as we know that

Equilibrium would be

Qd = Qs = Q

So

10-0.2Q = 0.2Q

0.4Q = 10

Q = 25 units is the equilibrium quantity

and P = 0.2Q

= 0.2 × 25

= $5 is the equilibrium price

4 0
3 years ago
The goals set in the managing by objectives process should be: Select one: A. flexible with regard to deadlines. B. specific and
nignag [31]

Answer:

B. Specific and measurable

Explanation:

Management by objectives represents a management approach emphasizing upon setting up of measurable goals, mutually agreed upon between superiors and subordinates.

Such an approach takes into consideration the setting up of those goals and objectives which are in alignment and compatible with the organization.

Objectives of such an approach are, to measure and evaluate performance in a better way, to help in comparing individual performances with organizational goals and to serve as a motivation for employees to perform better.

The approach is focused upon setting up of goals which are specific and which can be quantified i.e measured. For example, setting up of a goal of reaching a specific level of sales target.

8 0
2 years ago
Crane company is considering a long-term investment project called zip. zip will require an investment of $125,190. it will have
klio [65]

cash payback period ____3.21 _ years.

The $125,190 initial investment divided by the net increase in cash flow per period yields the cash payback period for this investment.

Cash Payback Period = Initial Investment /Net increase Cash Flow per Period

Net cash flow improvement for the period = $79,000 - $40,000 = $39,000

Cash payback period is 3.21 years ($125,190/$39,000)

The project's $125,190 initial investment would be repaid in 3 years, 2.5 months (0.21 x 12 months).

<h3>What is cash back period?</h3>

The Payback Period is the length of time it will take for an investment to generate sufficient cash flow to cover the entire investment. You would forecast the cash flow for the investment, project, or business when estimating the payback period.

To know more about Cash back period check out this:brainly.com/question/15849273

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4 0
2 years ago
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