1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
spin [16.1K]
3 years ago
13

Suppose that the U.S. government decides to charge wine consumers a tax. Before the tax, 25 million bottles of wine were sold ev

ery month at a price of $7 per bottle. After the tax, 18 million bottles of wine are sold every month; consumers pay $8 per bottle (including the tax), and producers receive $5 per bottle.
The amount of the tax on a bottle of wine is $ per bottle. Of this amount, the burden that falls on consumers is $ per bottle, and the burden that falls on producers is $ per bottle.

True or False: The effect of the tax on the quantity sold would have been smaller if the tax had been levied on producers.
Business
1 answer:
Arturiano [62]3 years ago
3 0

Answer:

The correct answer for the first scenario is total tax = $3, tax on consumer = $1 and tax on producer = $2.

For the second scenario, the answer will be False.

Explanation:

According to the scenario, given data is:

Price for consumer before tax = $7

Price for consumer after tax = $8

Price producer gets before tax = $7

Price producer gets after tax = $5

So, the amount of tax = Price consumer pay after tax - Price producer gets after tax.

= $8 - $5  = $3

Burden of tax on consumer = Price after tax for consumer - price before tax for consumer

=  $8 - $7 = $1

Burden of tax on producer = Price producer gets before tax - Price producer gets after tax

= $7 - $5 = $2

For the second scenario, given statement will be false because the result will be same if the tax is levied on producer or consumer.

You might be interested in
Portman Industries just paid a dividend of $1.68 per share. The company expects the coming year to be very profitable, and its d
alisha [4.7K]

Answer:

What is the expected dividend yield for Portman's stock today?

d. 6.40%

Suppose Portman is considering issuing 62,500 new shares at a price of $26.78 per share. If the new shares are sold to outside investors, by how much will Judy's investment in Portman Industries be diluted on a per-share basis?

a. $0.52 per share

Thus, Judy's investment will be diluted, and Judy will experience a total loss of $0.52 x 7,500 = $3,900

Explanation:

cost of equity = Re = risk free rate of return + (Beta × market premium) = 5% + (0.90 x 6%) = 10.4%

dividend in one year = $1.68 x 120% = $2.016

intrinsic stock price = $2.016 / (10.4% - 4%) = $31.50

expected dividend yield = dividend / stock price = $2.016 / $31.50 = 6.4%

Judy's loss per share = ($31.50 - $26.78) x (62,500 / 562,500) = $0.5244

7 0
3 years ago
A company produces 3 products that use labor and raw material. The labor usage, raw material usage, and profit per pound produce
Gekata [30.6K]

Answer:

sea 100% la materia prima disponible

si consume el 40% lo que le queda es 60%

60% < > 40% + 57

20% < > 57

si el 20% es 57 el 100% es 57 x 5 = 285kg

Explanation:

8 0
3 years ago
A warehouse manager who is placing an order for maintenance supplies for delivery vehicles would be making a programmed decision
liubo4ka [24]

Answer:

The Answer is False.

<u>The Ware house manager  who is placing an order for maintenance supplies for delivery vehicles would be making a non-Programmed decision</u>

Explanation:

<u>non-programmed decisions are the decision are basically concerned with the  maintenance supplies for  raw materials.</u>

<u></u>

<u>The Programmed decisions are made in response to situations that are unique,unpredictable  and that are largely  unstructured.</u>

6 0
3 years ago
Both nadia and samantha are applying to insure their car against theft. nadia lives in a secure neighborhood, where the probabil
MrRissso [65]

Answer:

Samantha will be willing to pay $ 2,600. The right answer is B.

Explanation:

Acording to the details, the probability of loss in case of Samantha's neighborhood is 25%.

Hence, the expected loss to her will be = 25/100 * 10000 = $2500

Samantha is willing to pay $100 over her expected loss, hence the amount that Samantha be willing to pay = ($2500 + $100 ) = $2600

Samantha will be willing to pay $2600

7 0
3 years ago
Penny buys 3 bouquets of flowers for $3 each and 4 bouquets for $2 each. which expression gives the total cost of the bouquets t
Elis [28]

The correct answer is 3³+ 4×2

Lets, calculate the total cost of the boquets of flowers that penny buys,

Penny buys 3 boquets of flowers, for 3$ each so, the total cost is given by,

3×3 = 33$

Penny buys 4boquets of 2$ each.

So, the total cost of the boquets of the flowers that worth 2$ each is given by,

(4×2 )

So, the total costs of the boquets of flowers that penny buys is given by,

3³+42.

Total cost is defined as the total expense by the individual or a company added to the variable costs occur. Total cost help the businesses to calculate their profits and loss and maintain their sales data.

The terms fixed costs, total fixed costs, and variable costs have a similar sound, there are important distinctions among the three. The primary difference is that whereas variable costs and total fixed costs are heavily over dependent on the quantity of goods or services a company produces, fixed costs do not take that quantity into account.

To learn more about fixed cost, refer this link

brainly.com/question/27328807

#SPJ4

4 0
2 years ago
Other questions:
  • to startup a small part time business assume your only cost are paying $100 for equipment and paying each employee you hire $ 20
    11·1 answer
  • Matt newell, a former air force pilot, decides to operate a helicopter tour company to provide customers with breathtaking views
    5·1 answer
  • Devon works as a customer service employee in a retail store. He understands the behaviors and feelings of his customers very we
    7·1 answer
  • Which sentences correctly describe the entitlements of an equity shareholder?
    9·2 answers
  • The balance in Accounts Receivable at the beginning of the year was $ 550 comma 000. The balance in Accounts Receivable at the e
    6·1 answer
  • Question 10 (5 points)
    12·2 answers
  • Which of the following statements is true regarding team composition?A) A team's performance is merely the summation of its indi
    12·2 answers
  • IN planning a database and it's related tables it is important to consider
    9·1 answer
  • Why is 10 cents earned far more valuable than a dollar found. Critical thinking.
    10·1 answer
  • Abc buys widgets for $5 cash and sells them on account for $8. From a cash flow perspective, the receivable is valued at?.
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!