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Debora [2.8K]
3 years ago
7

Suppose a $3 per-unit tax is placed on this good. the per-unit burden of the tax on sellers is

Business
1 answer:
Leto [7]3 years ago
6 0

Suppose a $3 per-unit tax is placed on this good. the per-unit burden of the tax on sellers is $1 .

Explanation:

The demand curve and the production curve are cross-secting before the tax level reaches $4.

The supply curve moves to the left when the tax of $3 was levied, so that the new price payable by consumers is $6 where the new supply curve and the demand curve intersect, while the seller collects $3 where the original supply curve and the demand curve intersects.

hence, the per unit burden of the tax imposed on buyers is $6 - $4 = $2

while the burden on sellers is $4 - $3 = $1

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Which economic activity is part of a government's fiscal policy?
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Answer:

D. Spending tax revenues

Explanation:

Fiscal policies are the actions of the executive wing of the government to alter its spending and taxation strategies to achieve macroeconomic objectives. Fiscal policies are the activities of adjusting government spending and taxation in the economy.  

The government receives data on the state of the economy from various agencies.  The government adjusts its spending and taxes to influence the level of economic activities to achieve steady growth and stable prices.

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3 years ago
Read 2 more answers
In order to offset the competitive disadvantage of FOB plant pricing, Texas Granite Company in Dallas could use _____ pricing to
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Answer:

Freight-absorption

Explanation:

Based on the information provided within the question it can be said that the Texas Granite Company in Dallas should use Freight-absorption pricing in this situation. This is a pricing strategy in which the seller takes responsibility for all the freight charges that the company incurs in order to attract the amount of business that they hope to achieve. Since company's that are looking to buy see 0 freight charges it becomes a deal since they are saving money as opposed to buying from another company that charges the freight charges to the buyer.

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3 years ago
If there are two identical companies, one financed 100% equity and the other 50% equity and 50% debt, which would be worth more
Umnica [9.8K]
The one with 100% equity?
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3 years ago
Suppose that a demand curve exhibits two points. Initially, at price P 0 P0 , the quantity demanded is Q 0 Q0 . When price chang
Vinvika [58]

Answer:

Price Elasticity of Demand= \frac{Percentage change in Demand}{Percentage change in Price}

At Price = P_{0}

Quantity demanded = Q_{0}

At Price = P_{1}

Quantity Demanded = Q_{1}

Now,

Percentage change in Demand = \frac{(Q_{1} - Q_{0})}{Q_{0}}

Percentage change in Price = \frac{(P_{1} - P_{0})}{P_{0}}

Price Elasticity of Demand = \frac{\frac{(Q_{1} - Q_{0})}{Q_{0}}}{\frac{(P_{1} - P_{0})}{P_{0}}}

Above formula if used will give the correct answer related to Price Elasticity of Demand.

Another variant of above formula is also being used on prominent basis.

Price Elasticity of Demand = \frac{\frac{(Q_{1} - Q_{0})}{(Q_{1} + Q_{0})} }{\frac{(P_{1} - P_{0})}{P_{1} + P_{0}} }

Utilization of any of the above Formula will give the ideal outcome in estimating Price elasticity of demand.

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David ricardo believed that:
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Trade will benefit countries when it generates gold and silver for the national treasury.
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