1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
qaws [65]
3 years ago
6

The demand for Carlo Rossi wine is relatively elastic since there are many other wines available to choose from. If the governme

nt decides to tax just this specific brand of wine, which of the following do you think will occur? (specifically, assume the supply curve is steeper than the demand curve)
a. The majority of the tax will be borne by the producer
b. All of the tax will be passed on to the consumer
c. All of the tax will be borne by the producer
d. The majoiy of thetax willbe bone by the consumer
Business
1 answer:
Tomtit [17]3 years ago
5 0

Answer:

A. The majority of the tax will be borne by the producer.

Explanation:

When an Indirect Tax (impact & incidence on different people) is levied : The burden of it is shifted to the party (buyers/ sellers) whose element (demand/ supply) is more inelastic (less responsive to price).

In this case: If demand for Carlo Rossi wine is relatively elastic (because of substitutes presence) - levying tax on it will hence imply major burden to be borne be producer (because demand is relatively elastic).

b,c : All tax will be borne passed to consumer / producer - if demand is perfectly inelastic/ if supply will be perfectly inelastic respectively.

d: Majority tax will be borne by consumer - if demand is relatively inelastic (than supply)

You might be interested in
Compare and contrast the three options from the perspective of cost. Which one do you believe will provide the most economical s
Anvisha [2.4K]

Incomplete question. The full question read:

Power Force Corporation Kip Himmer, executive vice president of operations of Power Force Corporation (PFC), is feeling stressed out. The producer of power tools for the do-it-yourself market is experiencing higher fulfillment costs as retailers change their buying patterns. They all seem to want smaller, more frequent shipments to a larger number of locations. And, the retailers' service expectations are on the rise. They are demanding advanced shipping notification, RFID tags on all products, and improved inventory visibility. Gone are the days when the retailers bought power tools by the truckload for delivery to a few regionally dispersed distribution centers. Instead, they are asking for smaller shipments to multiple distribution centers and direct delivery to stores. Some retailers are also inquiring about PFC's ability to deliver orders for individual customers direct to their homes. This drop-shipping strategy is completely new to PFC and Himmer worries that it could create major bottlenecks at the company's centralized delivery center that sits next to the factory in Louiseville Kentucky. And, all of these new requirements are accompanied by shorter order cycle time goals. Himmer feels that he is stuck between a rock and a hard place as the major home improvement chain stores (Home Depot, Lowe's, and True Value) account for more than 80 percent of PFC's sales. Although compliance is proving to be very expensive, PFC cannot afford to deny the requests. Doing so would have an unwelcome effect on revenues. After consulting with his fulfillment team, Himmer has come to the conclusion that he has three reasonable options to address the emerging marketplace requirements.

Option 1 - Upgrade the existing PFC distribution center in Kentucky to handle multiple order types and smaller shipments. Deploy warehouse automation to improve order fulfillment speed and efficiency.

Options 2 - Expand the PFC fulfillment network. Add regional distribution centers in Nevada and New Jersey to the existing Kentucky distribution center. Modify operational processes and flows so that orders for delivery centers, stores, and individual consumers can be fulfilled.

Options 3 - Outsource fulfillment to a capable third party logistics company so that PFC can focus its efforts on quality production, accurate demand planning, and lean inventory management.

Himmer's next step is to fully evaluate the three options and choose a path forward before his upcoming meeting with Marcia Avis, the owner of PFC. Avis will ask tough questions and Himmer must be confident in his recommendations.

<em>Compare and contrast the three options from the perspective of customer service. Which one do you believe will provide the most economical solution for PFC?</em>

Answer:

<u>Options 3 - Outsource fulfillment to a capable third party logistics company so that PFC can focus its efforts on quality production, accurate demand planning, and lean inventory management.</u>

Explanation:

In terms of cost, it will be preferable if Himmer outsourced the fulfillment objectives to another company that is capable because if for example, they decide to go with:

option 1: they will need to set aside large funds investing in physical infrastructure; such as upgrading the existing PFC distribution center in Kentucky, buying warehouse automation tools, etc. Or they chose;

option 2: It also requires even more funds to be able to expand and add new regional distribution centers in Nevada and New Jersey, etc.

7 0
3 years ago
Crestfield leases office space. On January 3, the company incurs $23,000 to improve the leased office space. These improvements
Lisa [10]

Answer:

Amortization expense $11,500

   To Accumulated Amortization- Leasehold improvements $11,500

(Being the expenses for the first year is recorded)

Explanation:

The journal entry is as follows

Amortization expense $11,500

   To Accumulated Amortization- Leasehold improvements $11,500

(Being the expenses for the first year is recorded)

The computation is shown below:

= Incurred expenses ÷ remaining life

= $23,000 ÷ 2

= $11,500

While recording this transaction we debited the amortization expense as the expenses account is increased while at the same time the accumulated amortization should be credited as it decreased the value of the asset

5 0
3 years ago
How can you avoid spending more than what is in your
zimovet [89]

Answer:

keep your own records to compare with your financial institutions records

4 0
3 years ago
A clothing store sells T-shirts, t, for $8 a shirt and shorts, s, for $12 each. The
Crazy boy [7]

Answer:

B. 8t + 12s = 216; t = 3s

Explanation:

t-shirts = $8 each

shorts = $12 each

$216 total

t-shirts sold = 3 x shorts

7 0
3 years ago
Read 2 more answers
Leslie, Inc., followed the practice of depreciating its building on a straight-line basis. A building was purchased in 2016 and
Phoenix [80]

Answer:

a. $395,000

Explanation:

Since the depreciating method is practiced in a straight-line basis, the equation for the value of the building as a function of the time in years (V(t)) is:

V(t) = -kt + C

Where k is the yearly depreciation rate of $15,000 per year and C is the initial cost.

For t = 25 years, V(t) = $20,000. Thus:

V(t) = -15,000t + C\\V(25) = 20,000 = -15,000*25 +C\\C= 20,000 + 15,000*25\\C= 395,000

The original cost of the building was $395,000

6 0
3 years ago
Other questions:
  • Is a production process that generates customized products in high volumes?
    14·1 answer
  • True or False
    13·1 answer
  • What is the definition of excellent customer service?
    13·1 answer
  • Using the following accounts and an overhead rate of 80% of direct labor cost, determine the amount of applied overhead. Work in
    9·1 answer
  • Cost outlays are recorded as an expense when they are incurred to earn revenue in the _______________ accounting period
    6·1 answer
  • Ginny is considering an investment costing $55,000 that has cash flows of $35,000 in Year 2, $36,000 in Year 3, and −$5,000 in Y
    5·1 answer
  • Ok, I actually need a lot of help- 30 points to whoever can
    10·1 answer
  • Plz helpp ill love u forever
    9·1 answer
  • Perit Industries has $165,000 to invest. The company is trying to decide between two alternative uses of the funds. The alternat
    6·1 answer
  • A company issued 8%, 15-year bonds with a par value of $550,000 that pay interest semi-annually. The current market rate is 8%.
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!