A tax on suppliers will cause the equilibrium price paid by the consumer to ______ and the equilibrium quantity to ______.
2 answers:
<u>A tax on suppliers will cause the equilibrium price paid by the consumer to and the equilibrium quantity to
.
</u>
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.
<u>Thus, the increase in the price of the product would result in a decrease in the quantity of the product. </u>
Learn more:
1. Learn more about the revenue from property taxes
2. Learn more about the tax on the profit from selling the fixed assets
3. Learn more about the personal tax
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.
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Answer:
Explanation:
1. Jasper Company
Income Statement
Sales (280000 x $12) $3360000
<u>Less: Cost of goods sold</u>
Add: Direct Material $180000
Add: Direct Labor $505000
Add: Manufacturing Overhead <u>$110000</u>
Cost of goods sold <u>($795000)</u>
Gross Profit $ 2565000
<u>Less: Expenses</u>
Selling expense $437000
Administrative expense <u>$854000</u>
Total expenses <u>($1291000)</u>
Net income <u> $1274000</u>
Percentage of sales for each line item
Sales = 100%
Cost of goods sold: x 100= 23.7%
Selling expense : x 100 = 13%
Administrative expense: x 100 = 25.4 %
2. According to the income statement in requirement 1, the manager can control cost by outsourcing the product if it is cheaper to get it from a third party in order to cut/control cost of goods sold.
Manager can also try controlling the administrative expenses as they are taking a bigger proportion than any other cost/ expense.
Answer:
D) Growth in earnings per share averaging 15% or better annually for the next five years
Explanation:
First of all, objectives must be well defined and measurable. That is why increasing profitability is a good idea but not a very good strategic objective, since a 0.00001% growth in profits will still comply with it. The same applies with growing market share.
Improving product quality will help improve total sales but it is not a financial objective.
The only financial objective that is precise and measurable is option D, which sets the goal of increasing earnings per share at least 15% every year.
