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Elza [17]
3 years ago
11

In the micro supply and demand model, which of the following is true when a fully effective price ceiling is removed from a comp

etitive market. (Assume no other change in government policy.) I. This change is a PPI II. Producer surplus must fall III. Consumer surplus must rise
Business
1 answer:
anzhelika [568]3 years ago
7 0

Answer:

Consumer surplus must rise

Explanation:

Remember, the Price ceiling is removed in a competitive market when there is a struggle to get many consumers.

If however the market price is not allowed to rise to the equilibrium level, quantity demanded would exceed quantity supplied, creating a shortage.

For example, several firms sells apple fruit at a price ceiling of $5, when the price ceiling is removed in this competitive market we would expect the firms to lower the price they sell their apples inorder to get more customers.

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Look Manufacturing Corporation has a traditional costing system in which it applies manufacturing overhead to its products using
LiRa [457]

Answer:

I'm figuring this out for you!

Explanation:

6 0
3 years ago
Suppose that over the past year, the nominal interest rate was 5 percent, the CPI was 150.3 at the end of the year, and the CPI
makvit [3.9K]

Answer:

The correct answer is option c.

Explanation:

The nominal interest rate was 5 percent.

The CPI was 150.3 at the end of the year, and the CPI was 144.2 at the beginning of the year.

The 5% nominal interest rate means that the dollar value of savings increased at 5%.

Inflation rate

= \frac{(150.3 - 144.2)}{144.2}

= 0.0423 or 4.2%

The real interest rate

= Nominal interest rate - rate of inflation

= 5 - 4.2

= 0.8%

The real interest rate of 0.8% indicates that the purchasing power of savings increased at 0.8%.

3 0
3 years ago
Product X-547 is one of the joint products in a joint manufacturing process. Management is considering whether to sell X-547 at
Sphinxa [80]

<u>Solution and Explanation:</u>

The correct answer is I, II, III, and IV

The reason behind is that joint cost is always related to the multifarious products.  Joint expense is the assembling cost brought about on a joint creation process which takes regular sources of info however at the same time delivers various items called joint-items, for example, preparing of raw petroleum at the same time yields gas, diesel, stream fuel, greases and different items.  

So, as to apportion expenses to such joint items, bookkeepers need to utilize an appropriate cost portion technique on a predictable premise. The joint cost alludes to that cost which is brought about before the split-off point on the creation or assembling of numerous items, by expending similar data sources or factors of creation.

5 0
3 years ago
He Wall Street Journal reports that the rate on three-year Treasury securities is 4.75 percent and the rate on four-year Treasur
Volgvan

Answer:

1 +1R4= {(1 +1R3)(1 + E(4r1) +L4)}1/4

1.0500 = {(1.0475)^3(1 + 0.0525 +L4)}1/4

(1.0500)^4= (1.0475)3^(1 + 0.0525 +L4)

(1.0500)^4/(1.0475)^3= 1 + 0.0525 + L4

(1.0500)4/(1.0475)^3-1.0525

L4= .0050358564 = 0.504%

4 0
3 years ago
Wythe is trying to decide whether he wants to purchase shares in General Motors, Ford, or Honda, all of which are auto manufactu
mylen [45]

Answer:

Security selection

Explanation:

Security selection is the process of choosing specific securities within a given asset class that individual can include in his portfolio .  For an individual to make securities selections, he has to  considers the risk, the return, the ethical implications, and other factors affecting both of the individual securities and the portfolio as a whole.

4 0
3 years ago
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