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iogann1982 [59]
3 years ago
11

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.

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What is the main advantage of using e-mail to complain about a service or product?
anzhelika [568]

Unlike conventional mail, email can send your complaint within minutes or seconds to the company.  This is the reason why use of email has become popular.  The reaction to act on the complaint will depend on the company.  Sending an email does not guarantee that they will act on it right away. 

4 0
3 years ago
small income-producing property is priced at $600,000 and is expected to generate the following after-tax cash flows: Year 1: $4
Lyrx [107]

Answer:

$-148,867.17

Explanation:

Present value of inflows=cash inflow*Present value of discounting factor(rate%,time period)

=42000/1.15+44000/1.15^2+45000/1.15^3+50000/1.15^4+650,000/1.15^5

=$451132.83

NPV=Present value of inflows-Present value of outflows

=$451132.83-$600,000

=($148867.17)(Approx)(Negative figure)

Hence since NPV is negative;investment must not be made.

4 0
3 years ago
Whispering Corporation issued $480,000 of 7% bonds on November 1, 2017, for $515,707. The bonds were dated November 1, 2017, and
Snezhnost [94]

Answer:

                                                                    Debit                           Credit

Interest Expense                                        5,157

Long term Bonds                                                                            5,157

Explanation:

The 7%bond is issued by the Whispering Corporation on November 1, 2017 and the Whispering Corporation is using effective interest method with an interest rate of 6%, therefore the adjusting entry shall be recorded as at December 31,2017 in respect of interest accrued for two months i.e. November and December 2017 by following amount:

515,707*6%*2/12=5,157

The following adjusting entry shall be recorded in accounts of Whispering Corporation in respect of interest accrued as at December 31, 2017:

                                                                    Debit                           Credit

Interest Expense                                        5,157

Long term Bonds                                                                            5,157

4 0
3 years ago
The horizontal line at the world price of tricycles represents the
scoray [572]
The Horizontal line would represent the price of the tricycles, whereas the vertical axis would represent the number of tricycles sold.
4 0
3 years ago
When both supply and demand decrease, the equilibrium price: a. increases and equilibrium quantity increases. b. is indeterminat
frosja888 [35]

Answer:

The answer is e.

Explanation:

First you draw a supply and demand graph. When you move to the left on the graph, you decrease and when you move to the right, you increase. Being that both supply and demand will decrease, you will end up in the left triangle of the original graph. In that area, you can't really decide the price because it's not clear if it increases or decreases. It is clear that the quantity decreases. So (e) is the answer.

5 0
3 years ago
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