Answer and Explanation:
Classical Theory:
Classical theory states that the economy is free flowing and that there should be no outside intervention. It states that the prices and wages move up and down freely. During good times the prices and wages tend to increase and during bad times or recession the prices and wages are adjusted accordingly to downwards.
Another vital information pertaining to classical theory is that it states: economy is always at full employment level of output. Which means that the aggregate supply curve is vertical and this implies that the increase in aggregate demand or a decrease in aggregate demand will lead to increase or decrease respectively. However, the output will remain same in the economy when it comes to the classical approach.
Answer:
c) $75.
Explanation:
<u>The disposable income is the amount of personal income after taxes</u>
we can solve for taxs using the savings identity:
<em>Savings = Private Savings + Public Savings</em>
where:
Private savings: personal income - personal consumption
and Public Savings = taxes - government spending
We plug the value in the formula and solve for T
5 = 85 - 70 + T - 20
5 = T - 5
T = 10
Now, we derive personal income:
85 income - 10 taxes = 75 disposable income
Simple answer....too break it down if there was no consumers there would be Stores open.
Definition of consumer is a person who purchases goods and services for personal use.
Answer:
$60
Explanation:
According to information on your question. We are to note that an absence or reduction of suppliers could lead to lower supply.
As in this case, the producer supply loss of $60 was incurred as some sellers dropped out of the market as a result of the tax.
$3.20
Take the total sales divided by total customers.
Sales of hotdogs 40* $2 = $80
of grilled cheese 10* $5 = $50
of cheeseburgers 5 * $6 = $30
Total sales $160/50 customer = $3.20/per customer
