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3 years ago

The government sets the price of subsidized corn too low. Which of the following statements describes the result?

Business

2 answers:

GREYUIT [131]3 years ago

5 0

Answer:

At that price, quantity demanded exceeds quantity supplied.

Explanation:

The subsidy is a government financial aid for a particular sector to produce a type of good, such as corn. This is applied when the value of the product is low enough to make production unfeasible. Because corn is an important product for the food industry and animal feed, the government gives producers a subsidy, which will be above market value. However, if the subsidy is low enough to not stimulate corn production, demand for the product will exceed supply. The solution to this is to raise the price of corn or to increase subsidies so that farmers have a stimulus to produce a quantity that meets demand.

malfutka [58]3 years ago

4 0

Because the price of the corn is very low many people will decide to go for it. Thus, the result will be that the quantity demanded for will exceed the quantity supplied.

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The value of which of these expressions is closest to e?

coldgirl [10]

Answer: B

Explanation:

Therefor, value 2.659 is closest to the value of e

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2 years ago

David Ricardo, a nineteenth-century economist, wrote, "The price of corn is high not because a rentis paid, but a rent is paid b

pishuonlain [190]

Answer:

The correct answer is the option 3: if the price of corn rises because of increased demand for corn, land rents will rise to absorb most of the extra revenue received by tenant corn farmers.

Explanation:

To begin with, in David Ricardo's statment it is established that ''the rent is paid because the price of the corn is high'' therefore it is understandable that it is stated that the price of the corn is not a cause of the rent but it is the opposite, the price causes the rent due to the fact that the rent is not a cost that has to go within the price but the price goes first and then the rent happens. Therefore that if there it an increase in the population and that causes and increase in the demand of the corn, then the price will rise and consequently the rent will rise to in order to obtain the most of the extra revenue that it can.

6 0

3 years ago

At a price of $100, Beachside Canoe Rentals rented 11 canoes. When it increased its rental price to $125, 9 canoes were rented.

zhuklara [117]

Answer:

C) 0.9.

Explanation:

The calculation of the price elasticity of demand is shown below:

Price elasticity of demand is

= (Change in quantity demanded ÷ average of quantity demanded) ÷ (Change in price ÷ average of price)

where,

q1 = 11

q2 = 9

p1 = $100

p2 = $125

So,

= {(9 - 11) ÷ (9 + 11) ÷ 2} ÷ {($125 - $100) ÷ ($125 + $100) ÷ 2 }

= {-2 ÷ 10} ÷ {25 ÷ 112.5 }

= -0.9

= 0.9

4 0

2 years ago

The point where total expenses equals to total income?

Anna35 [415]

Answer:

yfku

Explanation:

5 0

2 years ago

Icy Mocha Company estimates its factory overhead costs to be $35,000 and machine hours to be 5,000 for the year. If the actual h

Vedmedyk [2.9K]

Answer:

$160 overapplied

Explanation:

Icy Mocha company estimates it's factory overhead costs to be $35,000 and machine hours to be 5,000 for a period of one year.

The actual number of hours worked on job 333 and 334 equals a total of 4,980

The actual factory overhead costs are $34,700

The first step is to calculate the predetermined overhead rate

= Overhead costs/machine hours

= $35,000/5,000

= $7

The amount of either over or underapplied factory costs can be calculated as follows

= predetermined overhead rate×actual number of hours worked

= $7×4,980

= $34,860

The amount is then subtracted from the actual overhead costs

= $34,700-$34860

= -$160

= $160 overapplied

Hence the amount of overapplied factory overhead is $160

4 0

3 years ago