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TiliK225 [7]
3 years ago
8

Suppose that the (absolute value) of the elasticities of demand for apples, bananas, and peaches are 0.9, 1.6, and 0.8, respecti

vely. Assume that the supply curves for these goods are identical and that an identical tax is levied on each good. Rank the products from highest to lowest in terms of the deadweight loss caused by the tax.
Business
1 answer:
kogti [31]3 years ago
5 0

Answer:

Elasticity of demand impacts the dead weight loss caused by the tax.

More elastic the demand for a good, higher will be the dead weight loss caused by the tax.

The elasticity of demand for apples is 0.9

The elasticity of demand for bananas is 1.6

The elasticity of demand for peaches is 0.8

Greater the value of elasticity of demand, more elastic is the demand.

Bananas have the most elastic demand, followed by apples and then peaches.

So,

Bananas will have the highest dead weight loss followed by apples and then peaches.

Thus,

The correct order is bananas, apples, peaches.

Hence, the correct answer is the option (c).

Explanation:

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If your income per month is $4,321 and you aren't able to spend more than 36% of your monthly income on housing... to solve:

($4,321)(0.36) = $1,555.56
7 0
3 years ago
Given the following data for Coronado Industries, compute cost of goods manufactured: Direct materials used $120000 Beginning wo
Natasha2012 [34]

Answer:

cost of goods manufactured= $490,000

Explanation:

<u>To calculate the cost of goods manufactured, we need to use the following formula:</u>

cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP

cost of goods manufactured= 20,000 + 120,000 + 190,000 + 170,000 - 10,000

cost of goods manufactured= $490,000

6 0
2 years ago
In their battle for chocolate lovers, Godiva and Hershey's must divide the population into different categories of consumers, fo
Veseljchak [2.6K]

Answer:

a. True

Explanation:

Godiva is a well known chocolate shop and Hershey is renowned all over the world. To take over the market control both have divided consumers into different categories, e.g. luxury of buying chocolates versus cost-conscious who are willing to pay a subsequent amount only and those who are looking for quick energy boost so good labeling than those looking for a gift to loved ones so better outlook, although both have industries in the same market.

4 0
3 years ago
The unemployment rate in an economy is 6 percent. The total population of the economy is 290 million, and the size of the civili
Tema [17]

Answer:

2. 9 million

Explanation:

We know that

Unemployment rate = Number of unemployed workers ÷ Civilian labor force

6% = Number of unemployed workers ÷ 150 million

So, the number of unemployed workers would be

= 150 million × 6%

= 9 million

We simply applied the unemployed rate so that the number of unemployed workers could come

All other information given is of no significance. So, ignored it

7 0
3 years ago
Maple Farms, Inc. v. City School District of Elmira. Read the summary of the court opinion. Could something like this bankrupt a
tester [92]

The correct answers to these open questions are the following.

Maple Farms, Inc. v. City School District of Elmira.

Could something like this bankrupt a company?

Yes, it can, if the proper forecast were not done taking into consideration all of the possible variables at medium and long-range.

Do you agree with the decision?

It was a tough decision because the court declared in its decision that the performance was not impracticable, as Maple Farm Inc indicated when decided to break the contract.

In strict theory, I agree with the court's decision because the explanation was that an "impractical" occurred when an event happened totally unexpected. And in this case, Mapple Farm Inc could have taken extra provisions knowing that milk had a 10% increase the last year and had the chance of more increases in the present year.

That is how a company can avoid this type of situation. Taking better provisions, contemplating all kinds of variables, knowing that in the future, something unexpected can happen and could be prevented with the proper forecast.

8 0
2 years ago
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