All categories

3 years ago

Why do government regulations lead to higher prices for consumers?

1 answer:

6 0

<span>Government regulations mandate production or testing requirements to ensure the quality and safety of products. This typically means specialized equipment is needed to produce the product, more employees are needed to perform quality control tests, and possibly higher quality raw materials must be used. The cost of producing the product increases with the higher quality materials, new equipment acquisition, and additional paid employee time. These added production costs are then passed on to the consumer in the final price of the product.</span>

You might be interested in

If real GDP grows by 3 percent, the velocity of circulation does not change, and the quantity of money grows by 3 percent, then

trapecia [35]

Based on the real GDP growth rate, the velocity of circulation, and the quantity of money, the long run inflation rate will be 0%.

<h3>What is the long-run inflation rate?</h3>

This can be found using the Quantity theory of money:
Money supply x Velocity of circulation = Price level x Real GDP

Can also be written as:

% change in M + % change in V = % change in P + % change in Y

Solving gives:

3% + 0 = P + 3%

P = 3% - 3%

= 0%

The price level is to increase by 0% which means that inflation is 0%.

Find out more on the Quantity theory of money at brainly.com/question/26370040.

7 0

2 years ago

One common system for computing a grade point average (gpa) assigns 4 points to an a, 3 points to a b, 2 points to a c, 1 po

larisa86 [58]

Receiving an 'E' will not give you any point average.

6 0

3 years ago

Read 2 more answers

This case explores some issues related to entering a new foreign market and describes the strategies that one UK firm is using t

gizmo_the_mogwai [7]

Answer: Megabus being a late mover in the US, has allowed the company to learn from past mistakes by companies such as Greyhound, who filed for bankruptcy in the mid 90's and who lost most of it's business due to poorly maintained terminals, high prices for fares and unsafe conditions. Mega bus's advantages include fares as lows as 1 dollar, free wi-fi, stylish buses and power outlets. They Can offer these low fares since the company eliminated purchase Windows for tickets, selling tickets online only and by eliminating expensive terminal operations by dropping off and picking up riders at sidewalk stops like public bus operators. There are few disadvantages besides the fact that rising gas prices affect travel and low fare prices affect revenue if quantity is not met .

Advantages - 1. Affordable 2. Pretty scenery 3.You get what you paid for

Disadvantages-1. Uncomfortable 2. It’s Either Freezing or Sweltering 3. Odd People

2. Yes it has own Overwhelming resources and capabilities 3. Train

Explanation:

4 0

2 years ago

David has purchased an investment that he expects to produce an annual cash flow of $3,000 for five years. He requires an 8% r

Inessa05 [86]

Answer:

Explanation:

In order to find the highest amount david can pay or in other words the present value of the investment we would have to discount the cash flows

3000/1.08+3000/1.08^2+3000/1.08^3+3000/1.08^4+3000/1.08^5=11,978

8 0

3 years ago

The property tax on a rental house owned by Mr. Janey increased by $1,200 this year. Mr. Janey increased the monthly rent charge

MAXImum [283]

Answer:

Both will bear

Explanation:

Both Mr. Janey and Ms. lacey will bear the incidence of the property tax increase because Mr. Janey has only shifted $540 ( $45 x 12) of the total $1200 by increasing the monthly rent charge of his tenant Ms. lacey by $45/month. Mr. Janey will pay only $660 of $1200 increase in tax and remaining will be paid by Mr Lacey.

6 0

3 years ago