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Tpy6a [65]
3 years ago
12

Consider the market for white athletic socks, which consumers consider to be identical products. If the demand is very elastic a

nd the supply is very inelastic, how would the burden of a new tax on athletic socks be shared between consumers and producers? What if the situation were reversed – a very inelastic demand and a very elastic supply? How would that change the way consumers and producers share the burden of the new tax? Justify your answer.
Business
1 answer:
liberstina [14]3 years ago
8 0

Answer:

Elastic demand and inelastic supply : producer will share the burden

Inelastic demand and elastic supply: Consumers will share the burden

Explanation:

If the demand is very elastic and the supply is very inelastic, the burden of the tax will be borne largely but the producers. The surplus of the producers will decline substantially, because of very elastic demand of buyer the demand for athletic socks will decline. In the case of very inelastic demand and very elastic supply, the burden of the tax will be borne largely by the consumers. Similarly, due to high elastic supply, the supply of athletic socks in the market will decline and so as the consumer surplus.

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If an investment of $35,000 is earning an interest rate of 8.00%, compounded annually, then it will take for this investment to
Snowcat [4.5K]

Answer:

Therefore the required time period is 3 years.

Explanation:

To calculate the number of period we are using the following formula of future value

Future value = C_0(1+r)^n

C_0 is cash flow at period 0= $ 35,00

r = rate of interest = 8.00% = 0.08

n= number of periods = ?

Future value = $44,089.92

Substituting the values in the formula

44,089.92= 35,000(1+0.08)^n

\Rightarrow (1+0.08)^n=\frac{44089.92}{35000}

\Rightarrow(1.08)^n = 1.259712

\Rightarrow (1.08)^n=(1.08)^3

\therefore n= 3

Therefore the required time period is 3 years.

6 0
3 years ago
Cost is most plainly visible when spending more money on one thing means that less money can be spent on another thing. True or
SSSSS [86.1K]

The given statement about cost is a true statement as cost becomes most obvious when more money must be spent on one thing, leaving less available for another.

<h3>What is the cost?</h3>

A cost is often the value of the money that was expended during the production or delivery of something or service and is now unavailable for use.

Manufacturing, research, retail, and accountancy all make use of this idea. In business transactions, the cost may be an acquisition cost, in which case the amount of money spent to acquire it is considered to be part of the cost.

Finally, cost becomes most apparent when more money spent on one thing leaves less money for another. This corresponds to a true statement.

As a result, opportunity cost describes a decision we must make in order to make another one.

You have $50, for instance, which you may spend on a date with your partner or on your preferred game. The inability to purchase the game is your opportunity cost if you decide to utilize that money to take your partner out on a date.

Check out the link below to learn more about costs;

brainly.com/question/28343978

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6 0
1 year ago
Imagine that you are a management coach and one of your clients, a new manager, says, "I’ve heard that about two thirds of manag
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Answer:

I think 1 and 3

Explanation:

8 0
3 years ago
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Answer:

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If Jamir leases the car, his down payment will be $1500.

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Hence his down payment will be higher if he purchases the car.

If Jamir leases the car, his monthly payments will be $290, as against the monthly payment of $432.46, which is higher.

0 0
3 years ago
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Henderson Electronics Corporation manufactures and sells FM radios. Information on the prior year's operations (sales and produc
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Answer:

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