Answer:
They are equal
Explanation:
Negative externality is when the benefits of economic activities to third parties is less than its costs.
A tax is levied on negative externality to reduce quantity produced to the social optimal quantity.
If the amount of tax is equal to the amount of total negative externality, then after-tax equilibrium quantity will be equal to social optimal quantity.
If the amount of tax is less than the amount is equal to the amount of total negative externality, then after-tax equilibrium quantity will be greater than the social optimal quantity.
If the amount of tax is greater than the amount is equal to the amount of total negative externality, then after-tax equilibrium quantity will be less than the social optimal quantity.
I hope my answer helps you
Answer:
The correct answer is -0.2.
Explanation:
According to the scenario, the given data are as follows:
When rate = $1.50
Hot dogs sold at $1.50 = 500 units
And When rate = $1.35
Hot dogs sold at $1.35 = 510 units
So, we can calculate the price elasticity by using following formula:
Price elasticity = (%change in quantity ) ÷ ( %change in price )
Where, %change in quantity = (( 510 - 500 ) × 100) ÷ 500
= 1,000 ÷ 500
= 2
and %change in price = ((1.35 - 1.50 ) × 100) ÷ 1.50
= (-10)
So, by putting the value:
Price elasticity = 2 ÷ (-10)
= -0.2
Hence, the price elasticity of demand for hot dogs is -0.2.
Answer:
The answer is $677.43
Explanation:
The file attached is a word document that explains the problem in details. Thank you and i hope it helps you
Answer:
A) Demand would increase
Explanation:
Interest rates and demand are inversely related, that is to say, if interest rates rise, demand decreases, and if interest rates go down, demand goes up.
The reason for this is that a lower interest rate means that loans are cheaper. As loans are cheaper, investments increase, and more investment means more aggregate demand because investment is one of its components.
True,When comparing a 10-year bond versus a 1-year bond, the 10-year bond has a much greater interest rate risk
<h3>What is
bond?</h3>
A bond is a sort of financial security in which the issuer owes the bearer a debt and is obligated to repay the principle of the bond as well as interest over a specified period of time, depending on the terms. Interest is normally paid at regular intervals.
Bonds are one way for businesses to raise funds. A bond is a loan made between an investor and a firm. The investor agrees to contribute the corporation a particular sum of money for a set length of time. In exchange, the investor receives interest payments on a regular basis.
To know more about bond follow the link:
brainly.com/question/25965295
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