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3 years ago

What is the incentive to create a black market when a binding price ceiling exists?

Business

1 answer:

ivanzaharov [21]3 years ago

7 0

Answer:

The correct answer is option c.

Explanation:

A price ceiling shows the maximum price that a firm or supplier ca charge for its product in the market. The government generally imposes price ceilings to keep necessities affordable for the common people. A binding price ceiling is a situation where the price ceiling is fixed below the market equilibrium price.

At the binding price, there is excess demand. This is because at a lower price the consumers will demand more but the producers will supply less, because of the law of demand and law of supply.

In this situation, a black market emerges because the firms or sellers want to sell their high-quality goods at a higher price than that fixed by the government.

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An injunction that requires a defendant to take an action or set of actions is

lianna [129]

Answer:

C. mandatory

Explanation:

A law can be defined as the system of principles, regulations and rules established by legislature, that is adopted in a community, society or country to regulate the actions of its citizens, members or employees.

Thus, law is a tool used by the judiciary, lawyers, individuals, organizations, and even government to ensure everybody is well behaved, non-criminal and civil in their actions. Therefore, a law creates the foundation for ethical behavior.

In circumstances where there are aberration, the law is enforced as a punishment and penalty for wrongdoings or misdeeds.

There are various types of law and these includes; criminal law, constitutional law, intellectual property law, corporate law, international law, family law, civil law, etc.

An injunction can be defined as a legal and equitable court order compelling (commanding) or prohibiting an individual, group or entity to either perform or cease from performing a specific action.

Basically, a court of competent jurisdiction is empowered by law to grant an injunction to a third party for further examination and trial.

Similarly, an injunction that requires a defendant or plaintiff to take an action or set of actions is a mandatory injunction.

6 0

3 years ago

Read 2 more answers

Suppose in its income statement for the year ended June 30, 2017, The Clorox Company reported the following condensed data (doll

Leviafan [203]

The answer & explanation for this question is given in the attachment below.

5 0

3 years ago

A brick fence straddles the property line of two neighbors. The neighbors agree not to damage it in any way. This is an example

Vadim26 [7]

Answer:

A party wall

Explanation:

A party wall

A Party wall which sometimes also called a parting wall is referred to that wall which is used or shared by both property owners. The purpose of this wall is to separate the two adjoining owners, therefore, thickness varies from 9 to 12 inches. Party wall agreement need to signed between both sharing owners to make any repair work on the party wall.

4 0

4 years ago

Business employees calculate that the expense to produce an additional cell phone is $50. Monetarily amount represents a _____

Y_Kistochka [10]

C. Marginal Cost

Marginal cost is the <em>additional </em>cost to produce each unit of a good.

6 0

4 years ago

Item3 1.42 points PrintCheck my work Check My Work button is not enabled 3 Item 3 Item 3 1.42 points Lakeview Company completed

larisa [96]

Answer:

Lakeview Company

Journal entries

A. Payroll

Debit Wages with $94,500

Credit Cash with $94,500

(Being December wages paid employees in Cash)

B. Rent collection Journal Dec 10.

Debit cash with $6,750

Credit Deferred Revenue with $6,750

(Being 30 days rent collected in advance. Rent expires Jan 10)

C. Rent Collected (adjusted Journal)

Debit Deferred Revenue Account with $4,500

Credit Rent Account with $4,500

(Being rent income applicable to this years records)

3.. Liability recognition

Debit Employee income taxes with $12,000

Debit FICA employee deductions with $9,000

Debit employees contribution to cancer research with $4,500

Credit Employee income taxes payable account with $12,000

Debit FICA employee deductions payable account with $9,000

Debit employees contribution to cancer research payables account with $4,500

(Being deduction from employee December wages)

Debit FICA employer deductions with $9,000

Debit State & Fed unemployment taxes (employer) account with $1,050

Credit FICA employer deductions payable account with $9,000

Credit State & Fed unemployment taxes (employer) payable account with $1,050

(Being employer contribution and taxes incidental to December Wage payment)

In the Balance sheet.

Current liabilities.

Deferred Revenue = $2,250

Employee income taxes payable account = $12,000

FICA employee deductions payable account = $9,000

employees contribution to cancer research payables account = $4,500

FICA employer deductions payable account = $9,000

State & Fed unemployment taxes (employer) payable account = $1,050

Total current liability = $37,800

8 0

4 years ago