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3 years ago

Setting a price ceiling below the equilibrium price can result in:

Business

1 answer:

lana [24]3 years ago

4 0

Answer:

The correct answer is option a.

Explanation:

A price ceiling is an upper limit on the price that could be charged for a product. It is generally imposed to protect consumers and to make necessary items affordable for the people.

A price ceiling below the equilibrium price is called a binding price ceiling. It creates a shortage in the market as at lower prices the consumers will demand more of a commodity but the suppliers will supply less.

Because of the law of demand and law of supply, the quantity demanded will be greater than the quantity supplied at a price that is fixed below the equilibrium price.

You might be interested in

The demand function is given by

Jlenok [28]

Answer:

Q=120−4P

Explanation:

putting P = 20 we get

q= 40

we know that elasticity is quantity demanded / price

hence the correct option: D

5 0

3 years ago

The northern vision of the Reconstruction-era southern economy included all of the following EXCEPT:

IceJOKER [234]

Answer:

A. the labor system would be as close to slavery as possible, thereby assuring high productivity.

Explanation:

The Reconstruction - era of northern version was clearly impacted on Slavery.

As the main objective of such reconstruction was to remove slavery at maximum. And with the end of such reconstruction era there was an end to slavery.

Accordingly, new constitutional rights to people earlier under slavery were provided.

Now, therefore, statement a in the given instance which provides for close relation between labor system and slavery is incorrect.

Incorrect Statement is:

A. the labor system would be as close to slavery as possible, thereby assuring high productivity.

4 0

3 years ago

The following inventory was available for sale during the year for Dolphin Tools: Beginning inventory 10 units at $120 First pur

vaieri [72.5K]

Answer: $4,950

Explanation:

If the company is using the First In First Out method for Inventory valuation then the earlier inventory is sold off first which would mean that the inventory at year end will be the more recent inventory.

The 25 units at the end of the year will be the most recent units purchased and so will be;

20 units from the third purchase

5 units from the 2nd purchase

Inventory value = (20 * 195) + ( 5 * 210)

= $4,950

The options are not for this question.

8 0

3 years ago

Hurricane Irene was forecast to hit the Mid-Atlantic/Northeast about a week before it arrived. The plan to evacuate the Outer Ba

iragen [17]

The plan to evacuate the Outer Banks of North Carolina was a(n) action plan.

Explanation:

An action plan is a document that lists what steps need to be taken to achieve a specific objective. An action plan is a series of actions that need to be taken or tasks that need to be performed well, for a successful strategy.

An action plan seeks to explain what resources are needed to accomplish the goal, to formulate a timetable for when certain activities need to be accomplished and to decide what resources are needed.

3 0

3 years ago

Zoe Corporation has the following information for the month of March: Purchases $ 92,000 Materials inventory, March 1 6,000 Mate

NARA [144]

Answer:

Part (a) a statement of cost of goods manufactured

Raw Materials (see calculations) 90,000

Direct labor 25,000

Factory overhead 37,000

Total Manufacturing Cost 152,000

Add Opening Work In Progress 22,000

Less Closing Work In Progress (23,500)

Cost of goods manufactured 106,500

Part (b) an income statement for the month ended March 31

Sales 257,000

Less Cost of Goods Sold

Opening Stock of Finished Goods 21,000

Add Cost of goods manufactured 106,500

Less Closing Stock of Finished Goods (30,000) (97,500)

Gross Profit 159,500

Less Expenses

Sales and administrative expenses (79,000)

Net Income 80,500

Part (c) the "Inventory" section of the balance sheet

Raw Materials 8,000

Work In Progress 23,500

Finished goods inventory 30,000

Total 61,500

Explanation:

Part (a) a statement of cost of goods manufactured

Calculate the Cost of Raw Materials transferred to Manufacturing Process;

Hint: Open a Raw Materials T - Account.

Debits :

Materials inventory March 1 $6,000

Purchases $92,000

Totals $98,000

Credits :

Materials inventory, March 31 8,000

Manufacturing Account (Balancing figure) $90,000

Totals $98,000

6 0

3 years ago