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3 years ago

The difference between the willingness to sell a good and the price a producer receives is also known as:

1 answer:

6 0

It is known as PRODUCER SURPLUS. Producer surplus is a measure of the difference between the amount of money a producer of a good receives and the lowest amount the producer is willing to accept for the good. The difference, which is the surplus amount is the benefit of the producer for selling the good.

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Rent control policies tend to cause

Savatey [412]

Answer:

The correct answer is d. relatively smaller shortages in the short run than in the long run because supply and demand tend to be more inelastic in the short run than in the long run.

Explanation:

Rent control laws set limits on how much landlords can charge rent. The rent control laws specify:

What types of properties qualify for rent control.
How often rent limits can be adjusted.
How rent limits can be adjusted. Most rent control laws link increases in rental limits to an annual percentage of inflation in a local consumer price index.
The conditions when a property is "out of control."
Restrictions on the eviction of the tenant with rent control.

There are no federal rent control laws since the US Supreme Court. UU. He ruled that rent regulation is a state issue. Most states do not have rent control laws regulated. Only some cities and communities in some states continue to apply them.

In the United States, rent control laws were adopted during World War II when the country was experiencing a housing shortage. President Richard Nixon then passed the wage and price laws that influenced the modern rent control laws that are still being applied today. This is why most rent control laws usually apply to older properties built before 1980.

5 0

3 years ago

Milano Gallery purchases the copyright on an oil painting for $300,000 on January 1, 2017. The copyright legally protects its ow

murzikaleks [220]

Answer and Explanation:

According to the situation, the solution of journal entries are as follows

1. Copyright Dr $300,000

To Cash $300,000

(being the purchase of copyright is recorded)

Here, we debited the copyright as it increased the assets and credited the cash as it decreased the assets

2. Amortization expense Dr ($300,000 ÷ 12 years) $25,000

To Accumulated amortization $25,000

(being the annual amortization is recorded)

Here we debited the amortization expense as it increased the expenses and credited the accumulated amortization as it decreased the assets

5 0

3 years ago

A bank has three assets. It has $75 million invested in consumer loans with a three-year duration, $39 million invested in T-bon

dalvyx [7]

Answer:

A. 6.50 years

Explanation:

Let C represent consumer loans,

T represent T-bonds and

t represent T-bills

Portfolio duration = wC*dC + wT*dT + wt*dt

w = weight of...

d= duration of ....

Find the weights;

Total amount invested = 75 + 39 + 18 = 132 mill

wC = 75 / 132 = 0.5682

wT = 39 / 132 = 0.2955

wt = 18 /132 = 0.1364

Portfolio duration = (0.5682*3) +(0.2955*16) + (0.1364*0.5)

= 1.7046 + 4.728 + 0.0682

= 6.50 years

7 0

3 years ago

A general property of the EOQ inventory model is that total inventory holding and total ordering costs are equal at the optimal

ikadub [295]

Fkdhkwdkhehejwhvskwvdhd kid ideológico lemme lol lol lol

7 0

3 years ago

You have the following data on The Home Depot, Inc. Market value of long-term debt: $20,888 million Market value of common stock

Phantasy [73]

Answer:

Expected rate of return on equity under the new capital structure is 9.75 %

Explanation:

given data

Market value of long-term debt = $20,888 million

Market value of common stock = $171,138 million

Beta = 1.04

Yield to maturity at 10 year t = 2.167%

Expected return on equity = 8.895%

Marginal tax rate t = 35%

solution

we get here cost of unlevered equity by the cost of levered equity formula that is

cost of levered equity = rSU + (rSU-rD) × (1-t) × (D÷S) .................1

here rSL is cost of levered equity and rSU is cost of unlevered equity and rD is before tax cost of debt and D is value of debt and S is value of equity.

put here value and we will get

8.895% = rSU + (rSU-2.167%) × (1-35%) × (20,888÷171,138)

solve it we get

rSU = 0.084005

cost of unlevered equity = 8.40 %

and

cost of levered equity for new capital structure will be

put here value in equation 1

cost of levered equity = 8.40 + (8.40-2.376%) × (1-35%) × ( 20 ÷ 80 )

cost of levered equity = 9.75 %

5 0

3 years ago