What happens when a price floor is imposed above the equilibrium price of a good?

1 answer:

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<span>Price floors can have differing effects depending on other government policies. If the government agrees to purchase a specific maximum of unsold products at the price floor, it incentivizes a business to increase supply or at least to stay in the industry despite slow sales. Many governments do this for areas they see as strategically or politically significant, such as agriculture, or to prevent what they consider to be unfairly low prices of its products. If a foreign government sets a price floor for coffee beans, for example, and then agrees to buy the surplus up to a certain amount, it encourages growers to maintain their operations by placing an effective hedge against price fluctuations. If you own a small coffee shop, these price floors mean that you’re more likely to be able to find your imported beans, but you’ll pay more for them</span>

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blagie [28]

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Why is it necessary for us to have knowledge and professional education? show the relationship between education and professiona

Dominik [7]

Answer:

In terms of knowledge, it is more important because you have to be knowledgeable to handle situation. Whereas, professional education help you in think big and broad not shallow, in order to be an hero to over situations in life. THE relationship between them is to be professional and your have to be knowledgeable.

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g A machine with a cost of $130,000 and accumulated depreciation of $85,000 is sold for $50,000 cash. The amount that should be

alexandr402 [8]

Answer: $50,000

Explanation:

From the question, we are informed that a machine with a cost of $130,000 and accumulated depreciation of $85,000 is sold for $50,000 cash.

The amount that should be reported as a source of cash under cash flows from investing activities will be $50,000. It should be noted that only cash effects of transaction has to be added to the cash flow statement.

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Max and Lew have entered into a contract for Lew to paint Max’s house. The contract specifically states that the job was to be c

mars1129 [50]

Answer:

The correct answer is letter "D": nominal damages.

Explanation:

Nominal damages are granted as monetary rewards when a legal fault takes place but there has not been substantial damage because of it. It is said that the fact of granting the fault represents more of a moral act. Usually, if awarded, the plaintiff may receive $1 or $2.

In the case, as Max suffered no loss because of Lew's delay while painting his house, if he decides to sue him he will be awarded nominal damage for the contract breach.

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Kay's Sewing Loft is going to reduce its annual dividend by 10 percent a year for the next two years. After that, it will mainta

beks73 [17]

Answer:

The answer of the following question is $ 25.711

Explanation:

Dividend (D0)= $ 3 per share

D1 = $ 3 * (1 - 0.10) = 2.7 per share

D2 = $ 2.7 * (1 - 0.10) = 2.43 per share

P0 = $ 2 / 0.137 = $ 14.598

Market value of this stock = D1 * PVF 1 + D2 * PVF2 + P0 * PVF2

= 2.7 * 1/(1+0.137) + 2.43 * 1/(1+ 0.137)^2 + 14.598 * 1/(1+ 0.137)^2

= 3.699 + 3.141 + 18.871

= $ 25.711

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