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crimeas [40]
3 years ago
13

Suppose the government decides to create a price support (floor) on the price of corn, which of the following is a true statemen

t?
a) A binding price support/floor will tend to lower the price of corn for poorer people.
b) If the government does not buy any wheat, there will tend to be an excess supply of wheat in the marketplace, if the price floor is binding.
c) A non-binding price support/floor below the equilibrium price in the market will also lead to a rise in the price of corn.
d) It is likely that the total surplus (consumer surplus plus producer surplus) will rise with a price support program.
Business
1 answer:
SashulF [63]3 years ago
5 0

Answer:

<u><em>b) If the government does not buy any wheat, there will tend to be an excess supply of wheat in the marketplace, if the price floor is binding.</em></u>

Explanation:

Price support scheme is a government's policy to ensure that that the farmers earn profit on their commodities and keep producing. It main purpose is the encourage investment and production. To achieve this governments establish minimum price and purchases crops at that price.

It is an important component of government to promote agriculture. It is also beneficial for the consumers as it doesn't allows the price to rise above a certain level  and leads to lower prices for the consumers. If the government stops buying the wheat then there will be excess supply because no one will be able to buy the wheat at lesser price.

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Answer:

The payback period for this project is closest to 2 years

Explanation:

Initial investment = $300,000

Sales = $500,000

Cash variable expenses = ($200,000)

Contribution margin = 300,000

Fixed cash expenses = $150,000

Depreciation expenses = $37,500

Total Fixed expenses: $150,000 + $37,500 = ($ 187,500 )

Net operating income = $112,500

Annual cash inflows = Net operating income + Depreciation

= $112,500 + $37,500

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Payback period = Initial investment ÷ Annual cash inflows

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It should be noted that the aging structure data is important as it allows the rate of growth to be associated with the population in a country.

Your information is incomplete. Therefore, an overview of the topic will be given. There are typically three age structures which are:

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7 0
2 years ago
Determine what the current account balance equals. Step 2: Determine what the current account balance should equal. Step 3: Reco
kramer

Answer:

a. Account receivable and sales are understated.

Adjusting entry :

Accounts Receivable (Dr.) $21,000

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Adjusting entries will be created for the transactions that are not properly recorded or either completely not recorded. In the given case the customer is not billed for the services rendered. This has an impact on the asset account of the company because account receivable are understated.

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