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m_a_m_a [10]
3 years ago
5

The price elasticities of supply and demand affect A. the tax incidence but not the size of the deadweight loss from a tax. B. b

oth the size of the deadweight loss from a tax and the tax incidence. C. the size of the deadweight loss from a tax but not the tax incidence. D. neither the size of the deadweight loss from a tax nor the tax incidence.
Business
1 answer:
stira [4]3 years ago
4 0

Answer:

B. both the size of the deadweight loss from a tax and the tax incidence

Explanation:

The price elasticities of demand & supply are : buyers' & sellers' - demand & supply responsiveness to price change.

On levy of indirect tax - whose burden can be shared between buyers & sellers ; it affects tax incidence & deadweight loss both :-

  • More tax burden shifts on buyers if demand is more inelastic, more tax burden shifts on sellers if supply is more inelastic.
  • Deadweight loss is the effect of tax re allocation,  benefitting neither of consumer surplus, producer surplus, government revenue. It is less when demand &, or supply are more inelastic

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Ignacio and Perla are married and both are government employees. They contribute 22) money to various organizations each year an
yKpoI14uk [10]

Answer: D. $24,560

Explanation:

The contributions to charity and the clothing to Goodwill can be considered charitable deductions but the goodwill clothing must be value at second-hand value.

= Donation to WWF + Salvation Army + Breast Cancer research + Goodwill

= 3,500 + 10,000 + 11,000 + 60

= $24,560

3 0
3 years ago
When firms exit a market, the _________, causing individual firms’ profits to _________.
Tpy6a [65]

Answer:

<em>When firms exit a market, the short-run market supply curve shifts left, causing individual firms’ profits to increase.</em>

Explanation:

The process of <em>free entry and exit of firms</em> is in a sequence as explained under-

  1. If there is higher demand in the market of the product as compared to its supply, then each firm in the market will receive higher price for its product.
  2. This will increase the prices of the product, enabling higher profits for each firm. This will make the industry attractive, enabling the introduction of newer firms in the market.
  3. When the new firms enter the industry, the prices of the product in the market will drop due to higher competition, now present currently. This will lead to lowering of profits for the firms in the industry.
  4. This will make the industry non-attractive and thereby the less competitive and less effective firms will exit the market in the short run.
  5. This exit of firms from the industry, will lead to higher prices again due to less supply of product in the market as compared to its demand. Hence, the profits of the firms present in the industry will increase.

Thus, it can be concluded that <em>when firms exit a market, the short-run market supply curve shifts left, causing individual firms’ profits to increase.</em>

4 0
3 years ago
Read 2 more answers
Investor perception on the risk of bonds will raise their desired return.
faust18 [17]

The statement, investor perception on the risk of bonds will raise their desired return is true.

The higher an investment's risk, the greater its potential returns should be. By contrast, a very safe and low-risk investment should generally offer low returns. So, this investor perception will raise the desired return of the risk of bonds.

Generally, the higher the potential return of an investment, the higher the risk. Thus, there is no guarantee that you will actually get a higher return by accepting more risk. In this matter diversification is useful.

Hence, you can minimize the risk by making sure the company's bond you own is not a high risk company with a high probability of paying back.

To learn more about risk of bonds here:

brainly.com/question/14850768

#SPJ4

3 0
2 years ago
The law of ______ returns states that as successive units of a variable resource are added to a fixed resource, beyond some poin
gladu [14]

The law of Diminishing returns states that as successive units of a variable resource are added to a fixed resource, beyond some point, the marginal product will decline.

<h3>What is the law of Diminishing returns?</h3>

The law of diminishing returns explains that when an investment in a particular area increases there will be a stop at the rate of profit from that investment, after a certain point.

Learn more about the law of Diminishing returns at brainly.com/question/17169713

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4 0
1 year ago
Poland's Paints allocates overhead based on machine hours. Selected data for the most recent year follow.Estimated MOH $238,000A
Ulleksa [173]

Answer:

B.) $11.90

Explanation:

Predetermined manufacturing overhead rate are based on the estimates made by the company.

So the calculation should be:

Estimated MOH of $238,000<em> divided by</em> Estimated Machine Hours of 20,000.

Giving us the result of $11.90

(238,000 / 20,000 = 11.90)

7 0
3 years ago
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