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Natalka [10]
3 years ago
5

Suppose that the U.S. government decides to charge wine producers a tax. Before the tax, 30,000 bottles of wine were sold every

week at a price of $4 per bottle. After the tax, 25,000 bottles of wine are sold every week; consumers pay $6 per bottle, and producers receive $3 per bottle (after paying the tax). The amount of the tax on a bottle of wine is $ per bottle. Of this amount, the burden that falls on consumers is $ per bottle, and the burden that falls on producers is $ per bottle. True or False: The effect of the tax on the quantity sold would have been smaller if the tax has been levied on consumers. True
Business
1 answer:
kozerog [31]3 years ago
8 0

Answer:

Explanation:

We were informed from the question that;

BEFORE; the tax, 30,000 bottles of wine were sold every week at a price of $4 per bottle.

AFTER; After the tax, 25,000 bottles of wine are sold every week; consumers pay $6 per bottle and producers receive $3 per bottle (after paying the tax).

✓✓The amount of tax on wine = $6 - $3 = $3 per bottle

✓✓The tax burden on consumers = The amount paid after tax - The amount paid before tax

= $6 - $4

=$2 per bottle

✓✓The tax burden on Producers = Price received before tax - price received after tax

= $4 - $3

=$1 per bottle

Hence, The amount of the tax on a bottle of wine is $3 per bottle. Of this amount, the burden that falls on consumers is $2 per bottle, and the burden that falls on producers is $1 per bottle.

The effect of the tax on the quantity sold would have been smaller if the tax had been levied on consumers(FALSE)

This is false, since the The tax burden on Producers is $1 per bottle while that of The tax burden on consumer is $2 per bottle.

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9. Emil Motycka is considered an entrepreneur because
Nataliya [291]

Answer:

he started and managed a business.

Explanation:

Entrepreneur is the person who is willing to take risk by putting his capital to create and operates business.

Emily Motycka gained his fame because he started and managed a business at 13. He created Motycka Enterprises  , a company that offers lawn mowing services to the suburban houses.

By the time he entered high school, he already earned  a 6 figure income, while most people only able to get that type of earning in their 30s.

6 0
2 years ago
Granite State Airlines serves the route between New York and Portsmouth, NH, with a single-flight-daily 100-seat aircraft. The o
TEA [102]

Answer:

Given data: One flight with total seats = 100

Full fare passengers, cost per ticket=$150, mean=56 passengers, SD=23

Discount fare passengers, cost per ticket=$100, mean=88 passengers, SD=44

(a) Here, though there is a hint to use the CDF, since the confidence interval is not given we will make some simplying assumptions that will reduce the complexity of the question, of course keeping the question statistically correct.

this question wants us to maximize total revenue per flight (one way), we can do that by taking only full fare passengers or total revenue will be 150*100=$15,000, but since historical probability shows a mean of 56 with a standard deviation of 23, we can assume in best case scenario total full fare ticket passengers will be 56+23=79, leaving 21 tickets for discount passenger, in this case the total revenues will be 79*150+21*100=$13,950

(b) Now, the new constrained policy is giving a clear cut number of seats to each category of pasengers, 44 for discount (total revenues 44*100) and 56 for full fare (total revenues 56*150) both of which are within the probabilities given earlier (full fare mean=56, discount mean=88). Total revenues in case will be 44*100+56*150=$12,800.

(c) Gain is the difference of the excess revenues in both cases of optimal total revenues and limited seats policy or answer (a) - answer (b) = $13,950- $12,800=$1,150

(d) Realistically speaking, there is no answer for this question without a clear cut confidence interval. Another simplifying assumption we can make here is taking the mean passengers as expected bookings (can be tweaked once confidence interval or degree of significance is given). so total revenues in this case will be 44*100 from discount and 56*150 from full fare passengers. That is still similar to answer (c) due to our assumption/lack of constraints, so our optimal booking will be 54 full fare tickets and 44 discount passenger tickets. You can also take worst case scenario by subtracting SD of each passenger type from the mean or go the best case scenario in which SD of full fare will be added to the mean while the pending seats (left over from 100) will be the total to discount fare for optimal revenue collection.

6 0
3 years ago
Read 2 more answers
On January 1, 2020, NoDice Corporation issues $540,000, 5-year, 12% bonds for $529,000. Interest is paid semiannually on January
Svet_ta [14]

Answer:

Dr Interest expense                    $33,500

Cr Discount on bonds payable                 $1,100

Cr Cash                                                            $32,400

Explanation:

Discount on bonds payable=$540,000-$529,000=$11,000

Amortization of discount=discount on bonds issue/period of the bond

period to maturity of the bond is  5 years *2 =10 since the bond pays interest semi-annually

Amortization =$11,000/10=$1,100

Semi-annual interest=$540,000*12%/2=$32,400

the bond semi-annual interest expense=discount amortization+interest payment

the bond semi-annual interest expense=$32,400+$1,100=$33,500

5 0
3 years ago
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Alekssandra [29.7K]

Answer:

ex ante real interest rate.

Explanation:

According to Fisher effect the expected inflation rate will affect indices like nominal interest rate, current prices of goods, and the demand for money.

However it does not affect the ex ante real interest rate.

The Fisher effect shows how real interest rate is related to nominal interest rate.

Real interest rate = Nominal interest rate - Expected inflation rate

Ex ante real interest rate is the anticipated real interest rate in the future.

This is not considered in the Fisher effect

6 0
2 years ago
Bart works as an accountant for Good Times Restaurant. He is responsible for not only keeping the books current but also for mak
GenaCL600 [577]
Embezzlement. He is taking (stealing) asserts that we’re entrusted to him. Bad Bart!
7 0
2 years ago
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