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Nitella [24]
3 years ago
9

Assume the demand function for basketballs is given by QD = 150 −3P + 0.1I, where P = price of a basketball, and I = average inc

ome of consumers. Also, assume the supply of basketballs is given by QS = 2P. If the market for basketballs is perfectly competitive, and the average income is equal to $1,500, what is the equilibrium price and quantity? What if a 20 percent income tax is introduced?
Business
1 answer:
TEA [102]3 years ago
4 0

Answer: (1) Equilibrium price = 60 and Equilibrium quantity = 120, when I = $1500.

(2)  Equilibrium price = 54 and Equilibrium quantity = 108, when I = $1200.

Explanation:

(1) When Average income (I) = $1500

At equilibrium, QD = QS

150 - 3p + 0.1I = 2p

150 - 3p + 0.1 × 1500 = 2p

5p = 300

p = \frac{300}{5}

p = 60

q = 2p ⇒ 2 × 60 = 120

Hence, p and q are equilibrium price and equilibrium quantity, respectively.

(2) If 20% income tax is introduced then Average income (I) = $1500 - 20% of  $1500 ⇒ $1500 - $300 = $1200

At equilibrium, QD = QS

150 - 3p + 0.1I = 2p

150 - 3p + 0.1 × 1200 = 2p

5p = 270

p = \frac{270}{5}

p = 54

q = 2p ⇒ 2 × 54 = 108

Hence, p and q are equilibrium price and equilibrium quantity, respectively.

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Answer:

The correct answer is (E)

Explanation:

A standard method of calculating transportation cost is used to maintain equality among organisations. This method is applied to all the workers and government employees, but it has some rules and regulations. If an employee for example attorney is using his vehicle for calling on clients is fine as long as the car average fuel consumption is standard. For example, if an attorney used his Tesla for calling on clients is not a standard way which is why transportation cost will not be calculated by the standard mileage method.

4 0
3 years ago
Jerry, a partner with 30% capital and profit interest, received his Schedule K-1 from Plush Pillows, LP. At the beginning of the
Kisachek [45]

Answer:

The Jerry's adjusted basis in his partnership interest at the end of the year is $45,500

Explanation:

The adjusted basis of Jerry in his partnership is shown below:

= Partnership interest - Ordinary loss + long term capital gain + dividend - non deductible expense + cash contribution - share reduction

= $50,000 -$15,000 + $3,000 + $2,000 - $500 + $10,000 -$4,000

= $45,500

The ordinary loss, share reduction, and non deductible expense would decrease the Jerry interest in partnership firm while all other cost would increase his interest. That's why the amount is added and subtracted.

Hence, the Jerry's adjusted basis in his partnership interest at the end of the year is $45,500

5 0
3 years ago
True or false The fair Labor standards Act ( FLSA) requires that all employees receive time- and -half for work in excess of 40
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Yes, all. A non-exempt employee is eligible for overtime/compensatory time for hours in excess of 40 in a given week.

6 0
2 years ago
Question 56 of 75. Louise is a 29-year-old taxpayer who will use the head of household filing status. Her 2020 modified adjusted
Andre45 [30]

Considering the situation described above, the maximum amount Louise may receive for the retirement savings contributions credit (Saver's Credit) is "<u>$150</u>."

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Therefore, Louise has only contributed $1,500 to her employer's 401(k) plan. Consequently, she can only receive 10%, which is "<u>$150</u>."

Hence, in this case, it is concluded that the correct answer is "<u>$150</u>."

Learn more about Savers credit here: brainly.com/question/25767045

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2 years ago
Prepare journal entries to record each of the following transactions of a merchandising company. The company uses a perpetual in
Mandarinka [93]

Answer:

A Merchandising Company

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Explanation:

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4 0
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