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MissTica
3 years ago
12

Suppose there is currently a tax of $50 per ticket on airline tickets. Buyers of airline tickets are required to pay the tax to

the government. If the tax is reduced from $50 per ticket to $30 per ticket, then the:_______
a. demand curve will shift upward by $20, and the effective price received by sellers will increase by $20.
b. demand curve will shift upward by $20, and the effective price received by sellers will increase by less than $20.
c. supply curve will shift downward by $20, and the price paid by buyers will decrease by $20.
d. supply curve will shift downward by $20, and the price paid by buyers will decrease by less than $20.
Business
1 answer:
posledela3 years ago
6 0

Answer:

C: Supply curve will shift downward by $20, and the price paid by buyers will decrease by $20.

Explanation:

If tax is imposed on the buyer, it will impact the amount of tickets demanded by the people and ultimately the supply of tickets. So, If tax is reduced by $20, demand for tickets and supply will increase because now buyers have to pay $20 less for every ticket they buy.

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An agent is aggrieved by an action of the administrator summarily suspending that person's registration. the agent can:
IRINA_888 [86]

If the Administrator summarily suspends an agent's registration, the agent (who is not too happy about this!) can request a hearing in front of the Administrator.

A person chosen by the court to manage the estate of someone who passed away without a will is known as an administrator in law. An official appointed under an Administration Order in regard to a business that is having financial difficulties as an alternative to liquidation, as defined by British bankruptcy law.

An administrator is essential to the efficient operation of a firm and provides office support to either an individual or a team. They might be in charge of answering phones, welcoming and guiding guests, word processing, making spreadsheets and presentations, and filing.

Learn more about administrator here

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7 0
1 year ago
Acquisition costs; journal entries
Aleks [24]

Answer:

Journal entries for the transactions are given below

Explanation:

1. Development of new product

                                                               DEBIT     CREDIT

Research and development                 $24,000

Cash                                                                         $24,000

2. Paid the plaintiff for losing patent

                                                                DEBIT     CREDIT

Legal fee (expense)                             $8,000

Cash                                                                         $8,000

3. Bought Equipment and signed non-interest bearing note

                                                                DEBIT     CREDIT

Equipment Cash price                          $37,000

Discount on note payable                    $5,000

Cash paid                                                                  $18,000

Note payable                                                            $24,000

4. Installed sprinkler system

                                                                DEBIT     CREDIT

Sprinkler system                                     $40,000

Cash                                                                         $40,000

5. Plaintiff paid for successful infringement  suit on its patent

                                                                DEBIT     CREDIT

Patent                                                     $24,000

Cash                                                                         $24,000

6. Bought New equipment and traded old one

                                                                DEBIT     CREDIT

New Equipment                                    $13,600

Accumulated depreciation                   $6,800

Loss on sale                                           $3,400

Old Equipment                                                        $13,400

Cash                                                                         $10,400

Working:

Accumulated depreciation = Original Cost - book value

Accumulated depreciation = $13,400 - $6,600

Accumulated depreciation = $6,800                                                      

7 0
3 years ago
Economic profits are:a.less than accounting profits if implicit costs are greater than zero.b.less than accounting profits even
Lady bird [3.3K]

Answer:

option (a) is correct.

Explanation:

Economic profits refers to the profits which comes out after deducting the implicit costs and explicit costs from the total revenue.

Whereas the accounting profits takes into the effect of explicit costs only.

Implicit cost refers to the loss of money income by choosing some other alternative. It is also known as the opportunity cost.

Explicit costs refers to the costs that are incurred for operating or running a business.  

Accounting profit = Total revenue - Explicit costs

Economic profit = Total revenue - Explicit costs - Implicit costs

Therefore, if the implicit costs are greater than zero then the economic profits is less than the accounting profits.

5 0
2 years ago
How might increasing the level of government transfers reduce the size of the economic pie? check all that apply?
maksim [4K]
Since the increasing level of government transfers only transfers the wealth without actual creation of goods/services, Higher taxes may be necessary to finance increased transfer payments, leading to a reduction in hours worked because of a decrease in the reward for productive activity. Not only that, <span>.Greater transfer activity diverts productive resources into rent-seeking activity</span>
8 0
3 years ago
A monopolist has the total cost function c(q) = 750 + 5q. The inverse demand function is 140 - 7q, where prices and costs are me
Ierofanga [76]

Answer:

d. the firm will lose $750

Explanation:

marginal cost is the derivate of the cost function: It represent the cost of producting an additional unit

cost: 750 + 5q

dC/dQ = 5

We have determinate that marginal cost is $5 thus, we should price at the same value. The mistake from the goverment is to equalize marginal cost with price instead of marginal revenue.

This will make the firm loss the fixed component of the cost as will sale to pay up the variable cost.

The fixed cost is $750 so that is the loss from operations

4 0
3 years ago
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