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3 years ago

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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Jonathan has always been interested in computers. He consistently reads computer magazines, attends various seminars on computer

SashulF [63]

Answer:

The correct answer is: Ongoing Search.

Explanation:

Ongoing Search is the act by which an individual gathers information about certain topics because the search itself is pleasurable for that person. This type of search is not usually carried out with the intention of getting revenues from it but it could lead the individual to get more knowledge on a certain matter.

6 0

3 years ago

Eve's Apples opened for business on January 1, 2018, and paid for two insurance policies effective that date. The liability poli

Nutka1998 [239]

Answer: 18,000

Explanation:

Liability policy:

$Insurance\ expense\ per\ month=\frac{Prepaid\ Insurance\ for\ liability\ policy}{Period\ of\ policy}$

$Insurance\ expense\ per\ month=\frac{36,000}{18}$

= 2,000

Insurance expense 2018:

= No. of months from 1 Jan 2018 to 31 Dec 2018 × Insurance expense per month

= 12 × 2,000

= 24,000

Prepaid insurance balance for liability policy on 31 Dec, 2018:

= Prepaid Insurance for liability policy - Insurance expense 2018

= 36,000 - 24,000

= 12,000

Crop damage policy:

$Insurance\ expense\ per\ month=\frac{Prepaid\ Insurance\ for\ crop\ damage\ policy}{Period\ of\ policy}$

$Insurance\ expense\ per\ month=\frac{12,000}{24}$

= 500

Insurance expense 2018:

= No. of months from 1 Jan 2018 to 31 Dec 2018 × Insurance expense per month

= 12 × 500

= 6,000

Prepaid insurance balance for crop damage policy on 31 Dec, 2018:

= Prepaid Insurance for crop damage policy - Insurance expense 2018

= 12,000 - 6,000

= 6,000

Therefore,

Total prepaid insurance balance on 31 Dec 2018:

= Prepaid insurance balance for liability policy on 31 Dec, 2018 + Prepaid insurance balance for crop damage policy on 31 Dec, 2018

= 12,000 + 6,000

= 18,000

7 0

3 years ago

You can spend $100 on either a new economics textbook or a new CD player. If you choose to buy the new economics textbook, the o

Fed [463]

Answer: Option (B) is correct.

Explanation:

Given that,

Cost of new economics textbook = $100

Cost of new CD player = $100

Opportunity cost is the benefit that is foregone for an individual by choosing one alternative over other alternatives available to him.

If the opportunity cost is lower for an individual then this will benefit him whereas if the opportunity cost is higher then this will not benefit the individuals.

As the cost of both the products are identical, so the opportunity cost of buying new economics textbook is the enjoyment of the new CD player.

4 0

3 years ago

What is the maximum price that government allows sellers to charge

oksian1 [2.3K]

I think it's called a price ceiling. At least, that's what I think it is.

4 0

3 years ago

Thomas Book Sales, Inc., supplies textbooks to college and university bookstores. The books are shipped with a proviso that they

nata0808 [166]

Answer:

The following summarizes the solution to the given problem.

Explanation:

The given values are:

Sales,

= $660,000

Expenses,

= $255,453

Received cash revenues,

= $605,934

(a)

According to the accrual, profits would be acknowledged and therefore not necessarily received on the occasion of purchase.

⇒ $Net \ income=Sales-Expense$

On substituting the given values, we get

⇒ $=660,000-255,453$

⇒ $=404,547$ ($)

(b)

⇒ $Net \ Income =Received \ cash \ revenues-Expenses$

On substituting the given values, we get

⇒ $=605,934-255,453$

⇒ $=350,481$ ($)

(c)

The reliable financial foundation again for a financial consultant is more helpful because it demonstrates or represents the organization's appropriate financial status.
It accepts the profits throughout a similar time frame.

5 0

3 years ago