1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
kakasveta [241]
3 years ago
6

Sofia pays Sam $50 to mow her lawn every week. When the government levies a mowing tax of $10 on Sam, he raises his price to $60

. Sofia continues to hire him at the higher price. What is the change in producer sur- plus, change in consumer surplus, and deadweight loss? a. $0, $0, $10 h b. $0, -$10, $0 c. +$10, -$10, $10 d. +$10,-$10, $0
Business
1 answer:
Studentka2010 [4]3 years ago
7 0

Answer:

b. $0, -$10, $0

Explanation:

Sam is the producer, and he was getting $50 for moving Sofia's lawn. When the government imposes a tax of $10 on his activity, he now receives $60, but because $10 of those $60 is paid in taxes, his surplus remains the same: $50, so the change in the producer's surplus is $0.

Sofia is the consumer, and she was paying $50, but now she pays $60, thus, her consumer surplus has changed by -$10.

The sum of the change in consumer and producer surplus is $10 ($0 + $10), which is the same as the growth of government revenue from the taxes imposed: $10, therefore, the deadweight loss is $0.

You might be interested in
What is the best way to deal with a negative experience with a past employer or job if it comes up during your interview?
Citrus2011 [14]
To professionally address it from a honest and clear point of view. Hope this helps:)
7 0
3 years ago
Lisa Lasher buys 400 shares of stock on margin at $21 per share. If the margin requirement is 50 percent, how much must the stoc
geniusboy [140]

Answer:

$3.68 per share

Explanation:

Lisa Lasher purchases 400 shares of stock on margin at the price of $21 per share

The margin requirement is 50%

= 50/100

= 0.5

The first step is to calculate the amount of money invested

= $21×400×0.5

= $4,200

The amount in which the stock must rise to inorder for Lisa to realize a 35% return on invested funds can be calculated as follows

= 35/100×4,200

= 0.35×4,200

= $1,470

$1470/400 shares

= $3.68 per share

Hence the stock must rise to $3.68 per share for Lisa to realize a 35% return on her invested funds

6 0
3 years ago
The stadium manager has been tasked with maximizing total revenue (bound by current capacity, of course). What price should she
Andreyy89

Answer:

To maximize revenue based on current capacity, The Stadium Manager should set Premium Price for tickets.

Explanation:

If your aim is to maximize revenue based on the capacity of the stadium, Premium Price is your surest best.

Premium pricing is a type of pricing which involves establishing a price higher than your competitors to achieve a premium positioning.

You will attract the right kind of customers and when you set a premium price, you have raised the bar of expectation from your customers.

This will push the stadium to upgrade their customer service, their operations and delivery.

If this method is carried out properly by establishing club memberships and other marketing incentives, you will retain these premium customers and maximize revenue.

4 0
3 years ago
In a command economy:_______
boyakko [2]

Answer:

Option d                      

Explanation:

Command economies also recognized as a planned economy have as their core tenet that national government administrators own or operate a business within a nation.

A command economy refers to the mechanism in which the government determines what products should be manufactured, how much should be manufactured and the value at which the products are offered for sale, rather than the free market.

Thus, from the above we can conclude that the correct option is D.

5 0
3 years ago
Gruber Corp. pays a constant $8.45 dividend on its stock. The company will maintain this dividend for the next 15 years and will
nata0808 [166]

Answer:

The price of the stock today is $54.61

Explanation:

The stock of this company pays a constant dividend for a defined period of time after equal intervals. Thus, it is just like an annuity. To calculate the price of such a stock, we will use the present value of annuity formula:

Assuming that the dividend is paid at the end of the period.

Present Value of Annuity = Dividend * [(1 - (1+r)^-n) / r]

Where,

  • r is the required rate of return
  • n is the number of years of annuity

The price of the stock today is,

P0 = 8.45 * [(1 - (1+0.13)^-15) / 0.13]

P0 = $54.607 rounded off to $54.61

5 0
3 years ago
Other questions:
  • On January 2, 2010, Porter Corporation issued 30,000 shares of 6% cumulative preferred stock at $100 par value. On December 31,
    7·1 answer
  • What is rent in personal finance ?
    10·1 answer
  • Which of the following is a measure of liquidity?
    11·1 answer
  • One way to learn about your talents, skills, and personal qualities is to:
    14·2 answers
  • On July 1, Lee Co. sold goods in exchange for a $200,000 8-month noninterest-bearing note receivable. At the time of the sale, t
    6·1 answer
  • Week 3 and week 4 calculation and explanation required
    12·1 answer
  • What is the primary purpose of job specialization A. Regional self-sufficiency B. Increased consumer income C. Increased margina
    5·1 answer
  • A sector fund specializing in commercial bank stocks had average daily assets of $3.7 billion during the year. This fund sold $1
    7·1 answer
  • Gloria works as a freelance software developer with Ticki-Tacker Limited, a social media firm based in the city of London. She h
    9·1 answer
  • While watching a movie, Daysha notices that a few brands have been conspicuously integrated with its screenplay. The main charac
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!