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Alina [70]
3 years ago
12

joes shoe shop raises prices from the equilibrium price of $40 a pair to its new price of $60 a pair.

Business
2 answers:
kipiarov [429]3 years ago
6 0
I think you’re referring to the competitive equilibrium price
valentinak56 [21]3 years ago
3 0

Answer:

Since Joe's Shoe Shop increased their prices by 50% [= ($60 - $40) / $40], the quantity demanded by their customers will severely decrease resulting in in a supply surplus (or excess supply). An increase in the price of a product will increase the quantity supplied of the product but decrease the quantity demanded.

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The amount of amount of deadweight loss as a result of the tax is:______
klio [65]

Answer:

D. $5,000

Explanation:

This deadweight in a lot of cases are seen to occur especially when demand and supply are not in equilibrium and in and in the above scenario, it is pegged at $5000. Therefore sometimes consumers experience shortages, and producers earn but they'd otherwise.

Taxes are also seen in the creation of deadweight loss because they prevent people from engaging in purchases they'd otherwise make because the ultimate price of the merchandise is above the equilibrium value. If taxes on an item rise, the burden is commonly split between the producer and therefore the consumer, resulting in the producer receiving less cash in on the item and therefore the customer paying the next price.

3 0
2 years ago
Which document puts you at the LEAST risk of identity theft?
Radda [10]
Cash receipts put you at the least risk of identity theft. They contain absolutely nothing useful for those who would like to steal your identity and are completely anonymous.
6 0
3 years ago
Read 2 more answers
4. Carter owns a hair salon. He sets his own schedule based on commitments to his kids and his clients needs. Which core dimensi
Dafna11 [192]
That answer is skill variety
4 0
3 years ago
ABC Inc. just paid a dividend of $1.00 this year. The stock price is $15.43 currently. The market risk premium is 15% and the ri
mariarad [96]

Answer:

Price lowers and becomes negative or -5.37 dollars

Explanation:

Market risk premium's formula could be written as dividends/price + dividend's growth rate. Therefore, we dividend growth rate according to the current price and dividend level equal to market risk premium - dividends/price or 0.15 - 1/15.43 = 0.086 or 8.6%. If the dividend growth rate rises by 25% than new one is 33.6%. Price is equal to dividends/market risk premium - dividend growth rate or in this case 1/0.15-0.336 or 1/-0.186 or -5.37 dollars. If the price is negative that would mean that any future selling of the stock would mean that ABC would have to pay in order to sell it.

4 0
3 years ago
Cold Goose Metal Works Inc. is considering a one-year project that requires an initial investment of $500,000; however, in raisi
andrezito [222]

Answer:

The rate of return expected on this project by Cold Goose Metal Works Inc. is 15.20%

Explanation:

Since flotation cost is 4% that implies that $500,000 is actually 96% (100%-4%) of the cash proceeds from the capital funding,hence funds raised is computed thus:

funds raised=$500,000/0.96=$520,833.33  

Annual return on investment=cash inflow-initial cash outflow

cash inflow is $600,000

cash outflow  is $520,833.33  

annual return on investment=$600,000-$520,833.33=$79166.67

rate of return on project=annual return on investment/initial investment

                                        =$79,166.67 /$520,833.33*100=15.20%

The rate of return that Cold Goose Metal Works Inc is 15.20%

6 0
3 years ago
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