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3 years ago

Suppose that, in a competitive market without government regulations, the equilibrium price of gasoline is $3.00 per gallon.

Business

1 answer:

Rina8888 [55]3 years ago

4 0

Answer:

Price ceiling binding

price floor binding

Price floor binding

Explanation:

A price floor is when the government or an agency of the government sets the minimum price of a product. A price floor is binding if it is set above equilibrium price.

Price ceiling is when the government or an agency of the government sets the maximum price for a product. It is binding when it is set below equilibrium price.

The maximum price ($2.50) is less than the equilibrium price($3) . So it is a binding price ceiling

The minimum price ($3.40) is greater than the equilibrium price($3) . So it is a binding price floor

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The government regulates financial markets for two main reasons:

mart [117]

B. to improve control of monetary policy and to increase the information available to investors

C. To ensure that financial intermediaries do not earn more than the normal rate of return and to improve control of monetary policy

Hope this helped ;)

8 0

3 years ago

In preparing a company's statement of cash flows using the indirect method, the following information is available: Net income $

cestrela7 [59]

Answer:

Cash flows from operating activities:

Net income $52,000

Adjustments to net income:

Depreciation expense $30,000
Accounts receivable increased by ($25,000)
Inventories increased by ($5,000)
Accounts payable decreased by ($18,000) <u>($18,000)</u>

Net cash flow provided by operating activities $34,000

3 0

4 years ago

Kim's Bridal Shoppe has 11,500 shares of common stock outstanding at a price of $49 per share. It also has 280 shares of preferr

Lunna [17]

Answer:

44.66%

Explanation:

First, find the market values of each source of capital;

Market value of Common stock = 11500 *$49 = $563,500

Market value of Preferred stock = 280 *$91 = $25,480

Market value of bonds = 310 * (1.085 *$2000) = $672,700

Next, find the total market value;

=$563,500 + $25,480 + $672,700

= $1,261,680

Weight of common stock = $563,500/$1,261,680 = 0.4466 or 44.66%

7 0

3 years ago

Alistair is the owner of a small business unit. He has set aside funds to finance the day-to-day activities of the business. He

vovangra [49]

That fund is called the working capital. In running a company, there must be some money kept aside to handle petty cash issues generally occuring on a daily basis. This fund allows the organisation to be able to resist certain problems encountered because of lack of sufficient provision against unexpected events that may jeopardise the future of the company.

3 0

4 years ago

Read 2 more answers

A company gives talented staff free time to experiment and create new products and applications. Which form of innovation does t

Vlada [557]

Answer:

Product innovation

Explanation:

When a company decides to diverge its existing resources (in this question is the talented staff free time) to invent and develop a new product, this is a form of product innovation. Product innovation might be either defined as the development of a new product, or introduction of new features/applications or improvement to the performance of an existing product.

6 0

4 years ago