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3 years ago

How do elasticities of supply and demand affect DWL?

Business

1 answer:

LuckyWell [14K]3 years ago

5 0

Answer:

Because the elasticities of supply and demand measure how much market participants respond to market conditions, larger elasticities imply larger DW losses.

Explanation:

As a tax grows larger, it distorts incentives more, and its DW loss grows larger. Because a tax reduces the size of the market, however, tax revenue does not continually increase. It first rises with the size of a tax, but if the tax gets large enough, tax revenue starts to fall.

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A salt mine you inherited will pay you 25,000 per year for 25 years, with the first payment being made todayIf you think retum t

Lina20 [59]

Answer:

b. $299,574

Explanation:

For calculating the ask price, we first need to compute the present value which is attached in the spreadsheet.

In this question, we use the present value formula which is shown in the spreadsheet.

The NPER represents the time period.

Given that,

Future value = $0

Rate of interest = 7.5%

NPER = 25 years - 1 years = 24 years

PMT = $25,000

The formula is shown below:

= -PV(Rate;NPER;PMT;FV;type)

So, after solving this, the present value is $278,673.65

Now the ask price is

= $274,574.17 + $25,000

= $299,574.17

6 0

3 years ago

A bank customer borrows X at an annual effective rate of 12.5% and makes level payments at the end of each year for n years.(whi

Evgesh-ka [11]

Answer:

Y = $391.10

Explanation:

We have 0.125<em>B</em>(n-1) = i

B(n-1) = In = 142.78

So that B(n-1) = 142.78/0.125 = 1142.24

Furthermore, B(n-1) = <em>Px = Pv </em>= P/(1+0.125) = 1142.24

P/1.125 = 1142.24

P = 1142.24*1.125

P = 1285.02.

The total amount of the loan = Principal repaid as of time (n-1) + Principal repaid in last payment

= 6009.12 + 1142.24

= 7151.36

So, the total amount of the loan is 7151.36.

The principal repaid in the first payment Y = 1285.02 - 0.125*7151.36

Y = 1285.02 - 893.92

Y = $391.10

4 0

3 years ago

In your opinion, what is the most important factor affecting the demand for sports and entertainment commodities?

il63 [147K]

Answer:

Explanation:price of the commodity

price of related goods

income if the consumer

taste and preference

exceptation of change of price

7 0

3 years ago

Schaad corporation has entered into an eight-year lease for a piece of equipment. the annual payment under the lease will be $2,

SOVA2 [1]

If the discount rate of the eight-year lease for a piece of equipment entered by Schaad Corporation is 14% with an annual lease payment of $2,500, the present value of the lease payments is <u>$13,220.76.</u>

<h3>How is the present value of lease payments determined?</h3>

The present value (PV) of lease payments can be determined by computing the discount factor of 14% for 8 years and multiplying it with the annual lease payment.

The present value can also be computed using the PV table or the PV formula.

However, for this exercise, we have used an online finance calculator to determine the PV as follows:

<h3>Data and Calculations:</h3>

N (# of periods) = 8 years

I/Y (Interest per year) = 14%

PMT (Periodic Payment) = $2,500

FV (Future Value) = $0

Results:

PV = $13,220.76

Sum of all periodic payments = $20,000 ($2,500 x 8)

Total Interest = $6,779.24

Thus, if the discount rate of the eight-year lease for a piece of equipment entered by Schaad Corporation is 14% with an annual lease payment of $2,500, the present value of the lease payments is <u>$13,220.76.</u>

<u></u>

Learn more about the present values of lease payments at brainly.com/question/27136543

6 0

3 years ago

You’ve been asked to add a new customer for your client in their QuickBooks Online company, so, you go to the Sales Center and s

sveticcg [70]

Answer:

(2) Select the add customer button

(7) Select payment and billing

Explanation:

we know here client ask for add a new customer in Quick Books

so we first enter the basic detail of customer like name phone number email id address etc after that we select the add customer button after that also we can edit customer more details

then we have to select customer name from list and then select the edit button that is given top right corner

and if customer is not taxable then we need to enter re seller no whatever they provided

after that we select for payment and billing icon and select payment of method is credit card

last we save it

3 0

3 years ago