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3 years ago

How is elasticity related to the revenue from a sales tax?

Business

1 answer:

diamong [38]3 years ago

8 0

Answer:

The correct answer is (d)

Explanation:

Elasticity means a change in price will change the supply or demand more than the price change. If the demand is inelastic, then the increase in price will increase the tax revenues because the demand will not change much compared to the price change. Likewise, this phenomenon is the same in the case of supply; the increase in taxes will decrease the overall quantity supplied, which will decrease the overall tax collection or tax revenue.

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By shutting down, a firm A. stops receiving revenue and is stuck with its fixed costs. B. can avoid paying taxes on its previou

wel

Answer:

option A

Explanation: A firm cannot avoid paying taxes on previous profits as these profits were earned before the shutting down period and generally the taxes on profits for current period are paid at a later period. Thus option B is incorrect.

Revenue is the total income that a business gets from its normal operations and variable cost is the cost that changes with the level of output. Thus, there will be no revenue and also variable cost. Hence option C is incorrect.

Sunk cost are the costs that cannot be recovered and are already been incurred.So a company can avoid its variable cost by shutting down but not its sunk cost. Hence option D is incorrect.

Fixed costs are the costs that are independent of the level of output. Therefore, a company after shutting down will not receive revenue but will have to bear fixed cost. Hence option A is correct.

4 0

3 years ago

Which of the following is considered to be an accrued expense?

scoundrel [369]

Answer:

B. a computer technician has installed the latest software updates, but you have not received an invoice or made payment

Explanation:

An accrued expense arises when a service has been rendered to an individual or organisation but to which the recipient of the service has not made payment for the service. The expense will be recognized in the period in which the service is rendered. In this scenario, the technician has rendered a service by installing software updates but the organisation has not made payment for the service provided. This represents an accrued expense.

8 0

3 years ago

How manny people went to collage, and wish they hadn't? (This year.) (Average)

Anna007 [38]

Around 22 % this year alone.

8 0

3 years ago

Read 2 more answers

A ___ in the money supply will cause interest rates to decrease which in turn causes spending to come ?

vitfil [10]

Answer:

decrease/decrease

Explanation:

The interest rate is a monetary mechanism that serves to keep inflation under control. Inflation is a monetary phenomenon, caused by excess currency in circulation. Thus, the more money in circulation, the higher the interest rate tends to be. Conversely, when the money supply is smaller, inflation will be lower. Consequently, the interest rate will be low. Similarly, when the money supply is high, spending on the economy increases (and causes inflation). When the money supply is low, less money will be in circulation and spending will decrease. Inflation will be low. And the interest rate too!

5 0

3 years ago

Read 2 more answers

Cioffi Manufacturing Company incorporates standards in its accounts and identifies variances at the time the manufacturing costs

valina [46]

Answer:

A. Dr Materials $18,825

Dr Direct Materials Price Variance $8,575

Cr Accounts Payable $127,400

B. Dr Work in Process $97,000

Cr Direct Materials Quantity Variance $4,850

Cr Material 92,150

Explanation:

Preparation of the journal entries

A. Dr Materials $18,825

(2,450*$48.50 per unit)

Dr Direct Materials Price Variance $8,575

[2,450*($52.00 per unit-$48.50 per unit)]

Cr Accounts Payable $127,400

(2,450*$52.00 per unit)

B. Dr Work in Process $97,000

(200*10 units *$48.50)

Cr Direct Materials Quantity Variance $4,850

(2,000 units – 1,900 units) × $48.50

Cr Material 92,150

(1,900 × $48.50 )

6 0

2 years ago