Answer:
A price ceiling set at $6 will be binding and will result in a shortage of 8 units.
Explanation:
In order for a price ceiling to be binding, it must be set below the equilibrium price level. In this case, $6 is below the equilibrium price of $10. It will produce a shortage of 8 units because the quantity supplied by producers will be only 6 units, while the quantity demanded by consumers will be 14 units.
Binding price ceilings always produce a deadweight loss which is represented by the area between the demand curve and the supply curve left to the equilibrium price.
Answer:
It isn't a violation of the law of demand. It is as a result of the elasticity of demand.
A tax is a compulsory sum levied on a good or service. Taxes increases the price of products. In determining whom should bear the greater burden of the tax between the consumer and the seller, elasticities are usually considered. The party with either a relatively inelastic supply or demand bears the greater burden of tax while the party with the more elastic demand or supply bears less burden of tax.
Demand (supply) is elastic if a small change in price has a greater effect on the quantity demanded (supplied).
Demand (supply) is inelastic if a small change in price has little or no effect on the quantity demanded (supplied).
For good X, consumers have an inelastic demand so they bear more of the tax Burden. As a result of the tax, price increases, yet the quantity demanded doesn't change. Therefore, the total revenue would rise.
For good Y, consumers have an elastic demand. Therefore, they bear less burden of tax. As a result of the increase in price, the quantity demanded falls and total revenue falls.
Explanation:
Answer:
purchase; increase.
Explanation:
Suppose that the current federal funds rate is above the federal funds target rate. In order to lower the federal funds rate the Fed will purchase securities on the open market which will increase the supply of reserves in the market for reserves, pushing the rate closer to the target rate.
Answer:
The correct option is E , laissez-faire
Explanation:
Option A,autocratic is not correct since the scenario painted an opposite scenario and autocratic approach to management means the manager tells the subordinates what to do.
Bureaucratic is when decision making is slow because many stakeholders are expected to jointly decide.
However,laissez-faire is an approach where subordinates are allowed to think out of the box and get tasks accomplished without manager's interference.
Answer:
$5,102
Explanation:
Double declining Method
Cost $ 25,000
B Residual Value $2,000
C = A - B Depreciable base $23,000
D Life [in years] 7
E = C/D Annual SLM depreciation $3,286
F = E/C SLM Rate 14.29%
G = F x 2 DDB Rate 28.57%
.
Depreciation schedule-Double declining
Year Beginning Book Value Depreciation rate Depreciation expense Accumulated Depreciation Ending Book Value
1 $25,000 , 28.57%, $7,143 , $7,143 $17,857
2 $17,857, 28.57%, $ 5,102 , $ 12,245, $12,755
