Answer: inefficient allocation of sales among sellers
Explanation:
A binding price ceiling is one in which the government imposes a legal minimum price that can be charged for a good, when the equilibrium price is below it. The ceiling creates a shortage in the market which leads to illegal activities, wasted resources and inefficient allocation to consumers.
However, it does not lead to inefficient allocation of sales among sellers.
Answer:
$C$8
Explanation:
The Symbol $ means that by copying and pasting to another cell, the cell references will not change.
In this case, the references are "locked" onto column C. Copying the formula to some other location will not change the references since they are absolute.
Answer:
An optional Call
Explanation:
Callable Bond
Callable bond represents an instrument of debt where the issuer issues the instrument reserving the right to make a return of the principal of investors including the stoppage of interest payments before the date of maturity of the bond.
Organisations would usually issue bonds as callable when either to meet unexpected obligations like pay off other debts, fund expansions or when they sense that opportunities may arise in the future for them to get other forms of financing at lower interest rates.
For bonds to be callable the terms must be clearly stated in the bond's offering.
Optional Call
In optional call, the issuer reserves the right to call the bonds to take advantage of present circumstances such as significant drop in interest rates (as stated in the question). However, the terms detailed in the bond resolution will allow the bondholders to receive a premium to par as compensation for their loss of interest payments on the called bond.
Furthermore, a period of time must usually pass before the issuer can use the optional call.
Answer:B - $80
Explanation: Producer surplus is the difference btw what a consumer is paying and what a producer is charging.
From the above questions, Tom tuned the following pianos:
Buyer willing to pay $155.
Tom tuned piano 1 for $120, therefore his surplus on piano 1 is $155 - $120 = $35
Tom tuned piano 2 for $125, therefore his surplus on piano 2 is $155 - $125 = $30
Tom tuned piano 3 for $140, therefore his surplus on piano 3 is $155 - $140 = $15
Tom tuned piano 4 for $160, therefore his surplus on piano 4 is $155 - $160 = ($5)
All together his surplus is $35+$30+$15 =$80
