Why can deadweight loss occur when a price is below the equilibrium even when some consumers benefit from it?

1 answer:

7 0

When a shortage occurs, some consumers are fortunate enough to benefit from a lower price if they purchase the good or service before the price increase occurs.

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After reading the article, select the statements that are correct. Choose one or more: A. Elizabeth Warren has proposed using a

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Answer:

A). Elizabeth Warren has proposed using a new inflation measure that outpaces the current one used.

B). The former program trustee argues that the current inflation measure overcompensates seniors since it ignores the substitution effect.

C). According to advocates for seniors, the 2020 COLA is not enough to compensate for rising healthcare costs.

Explanation:

In the context of the article titled 'Social Security checks to rise modestly amid a push to expand benefits,' the first three statements assert the appropriate claims. It correctly states the new course of action for dealing with inflation as proposed by Elizabeth Warren after Blahous and seniors' complaint about the problems associated with the present rate for adjusting inflation as it ignored the impact created by substitution. Since <u>the present program(COLA) could not fulfill the compensation needs of the seniors, the new program has been proposed to overcome these flaws and compensate them appropriately</u>.

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Sifa Company is selling for Shs60.00 per share today. In one year, Sifa Company will be selling for Shs58.00 per share, and the

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The cash return on the stock given its value now, dividend per share and its value in a year's time is 3.34% .

<h3>What is the cash return?</h3>

The cash return is the sum of the dividend yield and the price return.

Dividend yield = dividend / price of the share today

$4 / 60 = 6.67%

Price return = (price in year's time - price today) / price today

= (58 - 60) / 60 = -3.33%

Cash return = 6.67% - 3.33% = 3.34%

To learn more about dividend yield, please check: brainly.com/question/27342287

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Major Supply, Inc., is seeking a judgment against Les Danforth on the basis of a representation made by Dirk Coleman, in Danfort

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C. If Major Supply gave credit in reliance upon the misrepresentation by Coleman, Danforth is a partner by estoppel.

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