Based on the marginal propensity to consume, the required tax cut to get a $300 billion stimulus is $400 billion.
<h3 /><h3>How much of a tax cut is needed?</h3>
This can be found by the formula:
= Required fiscal stimulus / Marginal propensity to consume
Solving gives:
= 300 / 0.75
= $400 billion
In conclusion $400 billion of tax cuts are needed.
Find out more on marginal propensity to consume at brainly.com/question/17930875.
#SPJ11
Answer: P =$50
Q= 25
Explanation: P= 100-2Q
P= 2Q
To get the quantity supplied Q, we have to educate both equations
100-2Q=2Q, 100=2Q+2Q
100=4Q, Q=100/4 , Q=25
To get the equilibrium price we have to substitute the value of Q which is 25 into any of the equation.
Using equation 1
P=100-2Q, P=100-2(25)
P=100-50, P=$50.
If the price is controlled at $60, then the production pays the producer this is because a commodity is not expected to be sold at the equilibrium price, price flooring is a way that government or a group control the market price of a commodity or produce by imposing a particular price on it. This is to ensure that the producers are not at loss with their production, a price floor is always higher than the equilibrium price to be effective as seen in the example given above, price floor is $60 while equilibrium price is $50.
An example of a price floor for services can be seen in the minimum wage stated by the government this is to ensure that people's services are not misused anyhow.
Price flooring most times can lead to surplus quantity produced if consumers are not willing to pay the price, because the producer will be wiling to produce more in order to make more profit.
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:
EIN; employer idenification number.
Explanation:
hope this helps :)
