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Ierofanga [76]
3 years ago
11

The government unit that wants to achieve "revenue enhancement" will find it considerably more favorable to enact an excise tax

on products whose demand is:_______.a. unitary elastic. b. relatively elastic. c. highly inelastic. d. highly elastic.
Business
1 answer:
boyakko [2]3 years ago
6 0

Answer:

C. highly inelastic

Explanation:

An excise tax on a product will increase its price from the equilibrium point, to a higher point set by the government.

If the government was to enhance its revenue by this means, it should enact the excise tax on products that are highly inelastic.

This is because a highly inelastic product is one whose quantity demanded does not fall considerably even if the price rises a lot.

This means that even if the product is more expensive after the excise tax, consumer will continue to buy it, increasing government revenue in this way.

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Why is a business plan considered a living document?
steposvetlana [31]

Answer:

Explanation:

A Living Document. A business plan is often referred to as a “living document”. This is because a these plans are constantly changing. Whenever new developments in competition, marketing tools, the legal factors which relate to an industry, or others change a business plan must be updated so as to keep relevant.

3 0
3 years ago
John Gardner is the city planner in a medium-sized southeastern city. The city is considering a proposal to award an exclusive c
borishaifa [10]

Answer:

<u>Monopoly</u>

P =      $20.00

Q = 10,000

<u>Socically Efficient:</u>

P = $16.80

Q = 14,000

The monopoly generates a deadthweight loss to maximize their gain.

In the socially efficient situation, there is no deadthweight loss threfore this makes the economy as a whole better.

Explanation:

Price = 28 - 0.0008Q

Marginal Cost  = 0.0012Q

Revenue: P x Q = (28 - 0.0008Q) x Q = 28Q - 0.0008Q²

Marginal Revenue:

R' = R(q) / dq = 28 -0.0016Q

We want to produce and sale until marginal revenue matches marginal cost:

28 -0.0016Q = 0.0012Q

28 = 0.0028Q

Q = 28 / 0.0028 = 10,000

P = 28 - 0.0008 (10,000) =

P = 28 - 8 = 20.00

The social efficiency will be that Price equals Marginal Cost.

28 - 0.008Q = 0.0012Q

28 = 0.0020Q

28 / 0.0020 = Q = 14,000

P = 28 - 0.0008(14,000) = 28 - 11.2 = 16,8

7 0
3 years ago
Silven Industries, which manufactures and sells a highly successful line of summer lotions and insect repellents, has decided to
BartSMP [9]
What I would do is do the percentages one by one and then you complete the actual project it’s self.
3 0
3 years ago
Suppose a price floor on sparkling wine is proposed by the Health Minister of the country of Vinyardia. What will be the likely
Elenna [48]

Answer:

The options for this question are the following:

A. Quantity demanded will decrease, quantity supplied will increase, and a shortage will result.; B. Quantity demanded will increase, quantity supplied will decrease, and a surplus will result.; C. Quantity demanded will decrease, quantity supplied will increase, and a surplus will result; D. Quantity demanded will increase, quantity supplied will decrease, and a shortage will result.

The correct answer is C. Quantity demanded will decrease, quantity supplied will increase, and a surplus will result.

Explanation:

There is a strong correlation between pricing (at prices higher than the equilibrium price) and the creation of excess supply. Following the analysis of supply and demand, if we start from an initial equilibrium situation (where the quantity demanded and supplied are equal) and the authority decides to set a much higher price, the quantity demanded of the product will decrease and, on the other hand, the quantity supplied will increase, so producers will want to sell more than consumers want to buy. The previous problem will be solved if the authority decides to lower the price of the product, since this encourages consumers to buy more and bidders to produce less.

8 0
3 years ago
Wendell’s Donut Shoppe is investigating the purchase of a new $47,300 donut-making machine. The new machine would permit the com
UNO [17]

Answer:

COnsider the following calculations

Explanation:

1.  $

Annual Savings in Part-time help 6300

Added Contribution Margin from expanded sales 2600x1.50 3900

Annual Cash Inflows 10200

2.

NPV @ 5%

= Present Value of Cash inflows - Present Value of Cash outlfows

= [10200x 5.076] - 47300

= $4475

NPV @ 10%

= Present Value of Cash inflows - Present Value of Cash outlfows

= [10200x4.355] - 47300

= -$2779

Internal Rate of Return = Lower Rate + [Lower rate NPV/ (Lower rate NPV - Higher rate NPV] x Difference in rates

= 5 + [4475 / (4475+2779)] x 5

= 8%

3. NPV @ 5%

= Present Value of Cash inflows - Present Value of Cash outlfows

= [(10200x 4.355) + (12000x0.564)] - 47300

= $3889

NPV @ 15%

= [(10200x 3.784) + (12000x0.432)] - 47300

= -$3519

Internal Rate of Return = Lower Rate + [Lower rate NPV/ (Lower rate NPV - Higher rate NPV] x Difference in rates

= 10 + [3889 / (3889+3519)] x 5

= 13%

4 0
3 years ago
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