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Sloan [31]
3 years ago
11

In 2015, the city of Berkeley instituted a tax on sugar-sweetened sodas. Suppose that the tax increased the price of a typical s

oda by 10 cents. Before the tax, residents in total consumed roughly 150,000 sodas per day (around 1.25 sodas per person), and consumption dropped to half that level, 75,000 sodas, by 2017. What was the per-day compensating variation of the tax
Business
1 answer:
DedPeter [7]3 years ago
8 0

Answer:

(g) Between 0 and -S7.5k because residents can substitute to other products

Explanation:

Data given in the question

Increase in price of typical soda = 10 cents

Total consumed = 150,000 sodas [er day

Dropped quantity = 75,000 sodas

So by considering the above information, the per day compensating variation of the tax varies from 0 and - 7,500

Since the sugar sweetened sodas is treated as a normal goods. Moreover, people can substitute the other goods also if there is an increase in a price of the good

The -7,500 is come from = (-75,000 × 0.10)

The options are as follows

(a) Greater than -$15k because soda is a luxury good with income (b) -$15k because that is the old consumption level times the value of the tax (c) Between -S7.5k and -$15k because soda is a luxury good elasticity > 1 with income elasticity >1 (d) Between -$7.5k arti -$15k because residents can substitute to other products (e) -$7.5k because that is the new consumption level times the value of the tax ()-$7.5k because that is the change in consumption times the value of the tax (g) Between 0 and -S7.5k because residents can substitute to other products (h) Between 0 and -$7.5k because because beverages are typically necessity goods with 6) Nothing because there was no effect on income G) It is impossible to say without knowing consumers' marginal rate of substitution income elasticity less than 1

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Answer:

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Explanation:

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3 0
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What is the value today of a money machine that will pay $4,010.00 per year for 13.00 years?
Maurinko [17]

Answer:

The present value of the machine is $35499

Explanation:

The annual amount or annuity amount = $4010 per year.

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Here, the interest rate is not given so we just assume the interest rate = 6% per annum.

Since we have a total number of years and annual payment that occurs for 13 years. We are required to find the present value of the machine. So use the formula to find the present value of the annuity.

The present value of machine = (Annuity amount x (1 – (1+r)^-n) ) / r

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The present value of machine = $35499

3 0
3 years ago
Zoey Bella Company has a payroll of $10,000 for a five-day workweek. Its employees are paid each Friday for the five-day workwee
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Answer:

                                  Dr.         Cr.

Salaries Expense   $8,000

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Explanation:

Four days of the week passed until December 31. So, the accrued expense will be as follow:

Payroll for 5 days = $10,000

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LUCKY_DIMON [66]

Answer:

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The indirect cost is also known as the overhead cost. The overhead cost are those cost which is related to the factory expenses like - depreciation, property taxes, utility expense, rent expense, repairs expense, indirect labor, and indirect material cost, etc

As we know

Predetermined overhead rate = (Total estimated manufacturing overhead) ÷ (estimated direct labor-hours) or (estimated machine labor-hours)  

As the case maybe

By using the predetermined we can easily allocate the indirect cost to the specific cost

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