All categories

3 years ago

A tax on suppliers will cause the equilibrium price paid by the consumer to and the equilibrium quantity to .

2 answers:

7 0

A tax on suppliers will cause the equilibrium price paid by the consumer to increase and the equilibrium quantity to decrease. The tax would basically make the supplier decide to increase the price of their product. In effect, the consumer would have to pay a higher price because of this incident. Since the price to be paid by the consumer would increase, the equilibrium quantity would eventually increase because the amount to be paid by the consumer is already fixed. When the price per unit would increase, the number of units that can be bought with the specified amount of money will eventually decrease.

levacccp [35]3 years ago

7 0

A tax on suppliers will cause the equilibrium price paid by the consumer to $\fbox{increase}$ and the equilibrium quantity to $\fbox{decrease}$ .

Further Explanation:

Equilibrium Price: Equilibrium price is a level of price where the demand and supply of the goods are equal.

Equilibrium Quantity: Equilibrium price is a level of quantity where the demand and supply of the goods are equal.

The law of demand states that the price of the goods increases when the demand for the goods decreases and vice versa. The increase in the tax would increase the price of the goods then the demand for the goods would decrease as per the demand law. The increase in the demand will result in a decrease in the equilibrium quantity.

Thus, the increase in the price of the product would result in a decrease in the quantity of the product.

Learn more:

1. Learn more about the revenue from property taxes

brainly.com/question/2689578

2. Learn more about the tax on the profit from selling the fixed assets

brainly.com/question/2617534

3. Learn more about the personal tax

brainly.com/question/1762937

Answer details:

Grade: High School

Subject: Economics

Chapter: Equilibrium price and quantity

Keywords: The tax on suppliers, equilibrium price, paid by the consumer, equilibrium quantity, law of demand, price of the goods, quantity demanded, Equilibrium price and quantity, economics.

You might be interested in

Investor perception on the risk of bonds will raise their desired return.

faust18 [17]

The statement, investor perception on the risk of bonds will raise their desired return is true.

The higher an investment's risk, the greater its potential returns should be. By contrast, a very safe and low-risk investment should generally offer low returns. So, this investor perception will raise the desired return of the risk of bonds.

Generally, the higher the potential return of an investment, the higher the risk. Thus, there is no guarantee that you will actually get a higher return by accepting more risk. In this matter diversification is useful.

Hence, you can minimize the risk by making sure the company's bond you own is not a high risk company with a high probability of paying back.

To learn more about risk of bonds here:

brainly.com/question/14850768

#SPJ4

3 0

2 years ago

The government offers a subsidy of $5 per unit that increases the profit-maximizing quantity to 200 units. What will the total c

mars1129 [50]

Answer:

An apple, potato, and onion all taste the same if you eat them with your nose plugged

Explanation:

7 0

2 years ago

An industry has 5 firms. Firm A has 30% of the market, Firm B and Firm C each have 25% of the market, Firm D has 15% of the mark

stiks02 [169]

Answer:

2400

Explanation:

The HHI is calculated by squaring the market share of each firm in the industry.

30² + 25² + 25² + 15² + 5² = 2400

5 0

3 years ago

Expected cash dividends are $4.00, the dividend yield is 8%, flotation costs are 6% of price, and the growth rate is 5%. Compute

Brut [27]

Explanation:

$\text { Dividend, } \mathrm{D}= 4 \\\text { Dividend yield rate }=\mathrm{D} / \text { Current price }=8 % \\\text { Current price }, \mathrm{P} 0=\mathrm{D} / 8 \%=\$ 4 / 8 \%=$ 50$

$\text { Flotation cost, } \mathrm{F}=8 \% \text { of current price }=\$ 50 * 8 \%=\$ 4 \\
\text { Growth rate,g }=4 % \\
\text { Cost of new common stock, } \mathrm{Ke}=[\mathrm{D} 1 /(\mathrm{P} 0-\mathrm{F})]+\mathrm{g} \\ =[\$ 4 /(\$ 50-\$ 4)]+4 \% \\
=0.086956522+0.04 \\
=0.126956522=12.7 \% \text {(Rounded) }$

12.7%

6 0

2 years ago

If your lifestyle budget is $50,000 a year, selecting a career earning $75,000 will most likely allow you to meet your lifestyle

Aleks [24]

This question is a True statement

7 0

3 years ago

Read 2 more answers

A tax on suppliers will cause the equilibrium price paid by the consumer to ______ and the equilibrium quantity to ______.

A tax on suppliers will cause the equilibrium price paid by the consumer to and the equilibrium quantity to .