4 years ago

Price floors usually result in ___________________.

1 answer:

3 0

When a price floor is set above the equilibrium price, quantity supplied will exceed quantity demanded, and excess supply or surpluses will result.

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The income elasticity of demand for a food is unity. a consumer's monthly income is $2,000, of which 20 percent is spent on food

Anna11 [10]

Obviously, it becomes half so it'll be 10%
Forgive me if its wrong. im answering as best as i can.

8 0

4 years ago

The Taste Freeze Ice Cream Company is a perfectly competitive firm producing where MR = MC. The current market price of an ice c

Alexus [3.1K]

Answer:

Taste Freeze should Shut down production so that AVC will decrease.

Explanation:

Taste Freeze should Shut down and produce zero sandwiches because price is less than AVC.

Therefore, Taste Freeze should Shut down production so that AVC will decrease.

8 0

3 years ago

The sum of two numbers is 21. the large number is 6 less than twice the smaller number

rosijanka [135]

X + y = 21
(x - y) = 2x - 6
Rewrite the first equation so that y = 21 - x
Now substitute y in the second equation, and solve for x.
Then solve for y

4 0

3 years ago

Ben Collins plans to buy a house for $180,000. If the real estate in his area is expected to increase in value by 1 percent each

rjkz [21]

Answer:

The approximate value of the house is 192984

Explanation:

I don't know what you mean by "<em>Use Exhibit 1-A</em>" but you can calculate this as follows

180000 * (1+1%)^7

The general formula of cumulative interest is

A * (1+i)^n

A = Amount

i = interest, in this case 1%

n = number of periods, in this case, 7

6 0

3 years ago

A total of $42,000 is invested in two municipal bonds that pay 4.25% and 7.75% simple interest. The investor wants an annual int

mart [117]

Answer:

$14,000 should be invested in the 4.25% bond.

Explanation:

Let's assume

Investment in bond with a coupon rate of 4.25% = x

Investment in bond with a coupon rate of 7.75% = y

According to given condition

x + y = $42,000 (i)

4.25%x + 7.75%y = $2,765

0.0425x + 0.0775y = $2,765 (ii)

Multiplying the equiation (i) by 0.0425

0.0425x + 0.0425y = $1,785 (iii)

Subtracting equation (iii) from equation (ii)

0.0425x + 0.0775y = $2,765

0 + 0.0350y = $980

0.0350y = $980

y = $980 / 0.0350

y = $28,000

Placing valye of y in equiation (i)

x + $28,000 = $42,000

x = $42,000 - $28,000

x = $14,000

Hence

Investment in bond with a coupon rate of 4.25% = x = $14,000

6 0

3 years ago