Why doesn’t a change in the price of eggs cause a change in the demand for eggs?

Suppose Congress is considering raising the top federal marginal tax rate from 35% to 40%. Senator Jones believes the elasticity

KIM [24]

Answer:

Explanation:

Solution-

According to Senator Jones, the elasticity of taxable income is larger, which means that due to a certain percentage rise in taxes, the taxable income rises by a greater percentage. Also, according to Senator Smith, the elasticity of taxable income is small, which means that due to a certain percentage rise in taxes, the taxable income rises by a smaller percentage.

(I) Under Senator Jones assumptions, due to rise in taxes, the taxable income has risen considerably as compared to Senator Smith assumptions. Thus the estimates of additional revenue from the tax increase will be larger under Senator Jones assumptions, compared to Smith's assumptions.

(ii) Since under Senator Jones assumptions, elasticity of taxable income is large. So due to rise in taxes, there is a significant proportional rise in taxable income under Jone's assumptions compared to Senator Smith assumptions. Thus the costs of the tax increase is borne more under Senator Jones assumptions , compared to Smith's assumptions.

3 0

3 years ago

Wildhorse Construction Company had a contract starting April 2021, to construct a $24900000 building that is expected to be comp

jek_recluse [69]

Answer:

The construction in process amount reported at December 2021 is $13,695,000

Explanation:

In this question, we are asked to state the amount the company will report construction in the process of.

Firstly, we calculate the profit = Total contract price - Expected costs of contract = $24,900,000-$22,900,000 = $2,000,000

The profit in percentage of cost is; 2,000,000/22,900,000 = 8.73%

The costs incurred in 2021 is $12,595,000

The proportionate profit = 12,595,000 * 8.73 = $1,100,000

The construction in process at December 2021 = Cost incurred + Proportionate profit = 12,595,000 + 1,100,000 = $13,695,000

3 0

3 years ago

Columbia Sportswear makes nylon activewear. Its marketing manager set a goal to increase sales 12 percent over the next three ye

GenaCL600 [577]

Answer:

a) functional planning

Explanation:

The functional planning is the planning that need to be done for each type of department so that the goals and the objectives of the company could be accomplish in a efficient and effective manner

Since in the question it is mentioned that the marketing manager have set a goal to rise the sales by 12% over the next three years so this represent that the manager is engaged in the functional planning

6 0

3 years ago

The Federal Reserve can affect the money supply by

vampirchik [111]

C if not please comment back :))

7 0

3 years ago

Let’s say a company that makes a consumer product such as laundry detergent asks customers to write a positive review about the

torisob [31]

A company that makes a consumer product such as laundry detergent asks customers to write a positive review about the product in exchange for a small chance of winning a $1 discount coupon.<u>The cognitive dissonance theory predict that the attitude of the customer toward the product will become Positive</u>

Explanation:

Cognitive dissonance theory talks about a state of an individuals mind in which their exist a conflict between the attitudes, beliefs or behavior of an individual,which produces a feeling of mental stress.

As per the cognitive dissonance theory Whenever there is an disharmony between our attitudes or behavior , we should make effort to eliminate the dissonance.

In the above question the company has made an effort to remove the dissonance among its customers by giving them a small chance of winning a $1 discount coupon.Thus resulting in a positive change in the attitude of the customer.

5 0

3 years ago