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2 years ago

If the government imposes a maximum price for milk that is above the equilibrium price:

1 answer:

6 0

<span>Maximum prices in economics can be also known as Price Ceiling, where it is the legal maximum prices that producers can sell their good at. However, as this causes a market disequilibrium, ceteris paribus, there will exist a surplus of goods produced. This is due to the signalling and incentive effective on producers and consumers resulting in the increase of price (that has been set by the government). Consumers would consume less of the product as it is more pricey than before, hence they are less willing and able to buy the product at the new price. Producers on the other hand sees more revenue to be earnt through higher prices and hence would devote their resources into producing that product. Hence the mismatch of supply and demand results in a surplus of products and would likely result in the government buying all the surplus out of interest for producers.</span>

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A firm has an issue of preferred stock outstanding that has a stated annual dividend of $4. The required return on the preferred

snow_lady [41]

Answer:

$64

Explanation:

A firm has an annual dividend of $4

The required return is 16%

Therefore the value of the preferred stock can be calculated as follows

= 16/100 × 4

= 0.16 × 4

= 0.64 ×100

= $64

Hence the value of the preferred stock is $64

4 0

2 years ago

Axel steals a business law textbook from beth. curt, who does not know that the book is stolen, buys it from axel. curt has comm

alex41 [277]

The answer is that C<span>urt has committed conversion.
Conversion can happen even when a man mistakenly trusted that he or she was qualified for that goods. As such, great aims are not a guard against change. Somebody who occupied stolen products has conferred the tort of change regardless of the possibility that he or she did not know the goods were stolen. In the event that the genuine proprietor brings a tort activity against the purchaser, the purchaser should either restore the property to the proprietor or pay the proprietor the full estimation of the property in spite of having effectively paid the price tag to the thief.
</span>

3 0

3 years ago

What is a "highly unreasonable omission or misrepresentation involving an extreme departure from the standards of ordinary care

Vesna [10]

It is RECKLESS CONDUCT. Reckless conduct refers to a practitioner's careless act which deviates significantly from the standard of care a reasonable individual would exhibit under a similar situation. Reckless conduct is a culpable offence and is punishable under the law.

8 0

2 years ago

If a company's current ratio increases from 1.2 to 1.4 from one year to the next, and its acid test ratio decreases from 0.20 to

Trava [24]

Answer:

The inventory has been reportedly increased and it should be checked.

Inventory management should be further examined.

Explanation:

Current Ratio = Current Assets/ Current liabilities

An increase in the current ratio means that there is an increase in the current assets or decrease in the current liabilities.

Acid test Ratio= Current Assets - Inventory / Current liabilities

If the acid test ratio is decreased it means that there is an increase in current liabilities or the current assets have decreased.

If we carefully look at the two formulas we find that inventory has increased and deduction of inventory from current assets reduces the amount of current assets and increases the current liabilities giving a bigger acid test ratio.

The inventory has been reportedly increased and it should be checked.

Inventory management should be further examined.

5 0

3 years ago

12. What happens as a result of a shortage? a. There is downward pressure on prices. b. There is upward pressure on prices. c. C

choli [55]

Answer:

Option C There is upward pressure on prices

Explanation:

The reason is that the price and supply are inversely proportional to each other. If the supply increases the prices of the product will decrease. This means that the product will increase its value if the supply of the product gets lower. Also note that the price moves upward to reach equilibrium for a level of supply. It means if the product prices increases then the supply shortage will be lowered as a result nobody will buy the product. So the supplier will have to lower price that the consumer will be willing to pay to the supplier.

4 0

3 years ago