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sweet [91]
4 years ago
8

Due to the decrease in the level of water in the lakes of Chapel Hill, the local government wants to reduce the consumption of t

ap water. They are evaluating two alternatives: to impose a minimum price per gallon of tap water consumed that is five cents greater than the actual price, or to impose an excise tax of five cents on consumption of tap water. Assume that this market is originally in equilibrium. Which of these two alternatives will deliver a bigger reduction in the quantity consumed
Business
1 answer:
Paul [167]4 years ago
6 0

Answer:

The correct answer is the first option: To impose a minimun price per gallon of tap water consumed that is five cents greater thant the actual price.

Explanation:

To begin with, if the local government is looking forward to reduce the consumption of the tap water due to the decrease in the level of water in the lakes of Chapel Hill, then it must impose a minimum price per gallon of tap water consumed that is five cents greater than the actual price <u>due to the fact that when the citizens continue to consume the tap water they will have to pay 5 cents more every time the exceed the gallon of water consumed</u>, therefore <em><u>paying more than one time the 5 cents extra</u></em> in the consumption instead of paying just one single time the 5 cents due to the simple consumption of water as it is suggested in the other option.

To sum up, if the government charges 5 cents more every gallon of water then the people will decrease their consumption because everytime they passed the gallon of water then they will have to pay another extra 5 cents and so on.  

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Conversion costs do not include which of the following costs?
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Answer:

I am pretty sure the answer is A) direct materials

Explanation:

Conversion cost equals direct labour plus manufacturing overhead

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3 years ago
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The income statement provided is from June. Since Aafreen operates her restaurant on a calendar year, the net income represents
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2 years ago
Cullumber Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures we
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Explanation:

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8 0
3 years ago
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Suppose individuals wish to obtain the most accurate comparison of living standards between the US and Saudi Arabia. To do so, o
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Purchasing power parity methods

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