Answer:
Correct option is (a)
Explanation:
Excise tax is an indirect tax which is not imposed on customers directly. Excise tax is imposed on producers or sellers for goods produced and they in turn transfer the burden of tax on customers in the form of higher prices. That is why, it is called indirect tax.
It is usually imposed on those goods such as liquor and tobacco whose consumption the Government needs to decrease. If excise tax is imposed on restaurant meals, then the restaurant will be able to produce and sell less at the same price it was charging earlier. If the restaurant wishes to sell more, then it will have to charge higher price.
Answer:
1. Adjustments of or changes in price are not smooth or synchronized.
2. Inflation rarely have impact on the prices of inputs.
3. The concentration of sellers is more on nominal prices of goods than real prices.
Explanation:
Inflation can be described as a sustained increase in the general price level of commodities within a country over a period of time.
The following are the reasons inflation in the real world result in shortages and surpluses:
1. Adjustmensts of or changes in price are not smooth or synchronized.
2. Inflation rarely have impact on the prices of inputs.
3. The concentration of sellers is more on nominal prices of goods than real prices.
Answer:
Answer = 54
Explanation:
Predictor Coef SECoef
T P
Constant 90.19 25.08 3.60 0.001
Price 0.03055 0.01005 −3.04 0.005
Advertising 3.0926 0.3680 8.40 0.000
The required multiple regression model is :
y = 90.19 - 0.03055 Price + 3.0926 Advertising
The estimated value of y for Price = 2199 and Advertising = 10 is :
y = 90.19-0.03055 x 2199+3.0926 x 10 = 53.94 ≈ 54
So , the number of units sold on average at a store that sells the Sony Bravia for $2199 and spends 10% of its advertising budget on the product is ≈ 54
