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ikadub [295]
3 years ago
6

Assuming a binding price floor, the more inelastic the supply and the demand curves are, the:1'smaller the shortage a price floo

r will create.2.greater the shortage a price floor will create.3.smaller the surplus a price floor will create.4.greater the surplus a price floor will create.
Business
2 answers:
bazaltina [42]3 years ago
5 0

Answer:

3) smaller the surplus a price floor will create.

Explanation:

A binding price floor will always create a supply surplus because the price is set above equilibrium price (that is why it is binding). So suppliers will increase the quantity supplied, but consumers will decrease the quantity demanded. This will cause a loss of economic efficiency and a deadweight loss.

If the supply curve is inelastic, then the surplus will be smaller because an increase in the price will result in a proportionally smaller increase in the quantity supplied.

Similarly, if the demand curve is inelastic, the quantity demanded will decrease in a smaller proportion than the price increase.

A combination of both inelastic curves will result in a smaller surplus created by the binding price floor.

KATRIN_1 [288]3 years ago
3 0

Answer:

Option "3" is the correct answer.

Explanation:

Inelastic demand curve depict when there's no evident increase in demand due to an increase in price.

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Project A has cash flows of $4000, $3000,&0 and $3000 for years 1 to 4 and project B has cash flows $2000,$3000,2000,$3000 f
rosijanka [135]

Answer:

Project X has both a higher present and a higher future value than Project Y.

Explanation:

Hope this helps :)

7 0
4 years ago
How does the Federal Reserve achieve these goals?
nikklg [1K]

Answer:

D.

Explanation:

The Federal Reserve achieve these goals by Raising and lowering short term interest rates. This monetary policy stimulates the economy. Taxation and government spending are also done in form of fiscal policies. Minimum wage is tool used raise the standard of living in USA. hence the correct answer to the question is  D) Raising and lowering short-term interest rates

4 0
4 years ago
Read 2 more answers
A manufacturing company has some existing semiautomatic production equipment that it is considering replacing. This equipment ha
dem82 [27]

Answer:

It is a better deal to keep the old equipment

Explanation:

\left[\begin{array}{cccc}&New&Old&Differential\\$leasing cost&0&-23,000&23,000\\$operarting cost&-26,000&-12,500&-13,500\\$operating income&-26,000&-35,500&9,500\\$tax shield&4,200&0&4,200\\$Result&-21,800&-35,500&13,700\\\end{array}\right]

each year the new equipment generates a 13,700 adidtional cash outflow

We should check if the cost saving per year at 8% will have a present value lower than the proceed from the sale:

C 13,700.00

time 5

rate 0.08

13700 \times \frac{1-(1+0.08)^{-5} }{0.08} = PV\\

PV $59,076.1377

As the differential cost exceeds the amount of proceed we would get if the old equipment is sold we already conclude we should keep it

5 0
3 years ago
When a recession is caused by a negative AD shock, we would expect inflation to _______________ and unemployment to ____________
Ilya [14]

Answer:

The answer is fall and rise

Explanation:

Hope this helps:)...if not then sorry for wasting your time and may God bless you:)

7 0
2 years ago
Read 2 more answers
Drag each tile to the correct box.
Fittoniya [83]

Answer:

Convenience checks: consumers use these to reduce their available credit in exchange for cash.

Installment loan: consumers make recurring fixed payments.

Introductory interest free: consumers can enjoy a set period of zero interest credit.

Revolving credit: consumers borrow an amount that they don’t have to pay off by a specific date.

Explanation:

In Business, credit can be defined as money or a loan facility agreed upon by a lender and a borrower, who is obligated to repay the lender at a specified date mostly with interest depending on the terms and conditions.

Credit generally decreases assets or increases liabilities and equity on the balance sheet of an organization.

3 0
3 years ago
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