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OlgaM077 [116]
3 years ago
6

Cigarette smokers are very loyal buyers of cigarettes. Even if prices of cigarettes rise, they will typically continue to buy th

e same quantities as before. Therefore, a new tax on cigarettes will be paid by Select the correct answer below:
a. mostly cigarette buyers.
b. mostly cigarette sellers.
c. both buyers and sellers equally.
d. the government.
Business
1 answer:
Amanda [17]3 years ago
3 0

Answer:

a. mostly cigarette buyers.

Explanation:

The law of demand states an inverse relationship between quantity demanded of a good and it's price, keeping other factors affecting demand as constant.

Price elasticity of demand refers to the degree of responsiveness of quantity demanded to a change in price.

Alcohol and cigarettes are exceptions to the law of demand since in their case, the factor of addiction presides which outweighs rational decision making.

Thus, price elasticity of demand of cigarettes is inelastic. So a marginally higher price charged for cigarettes will not reduce their consumption.

A new tax on cigarettes would raise their prices. The manufacturers, to cover such taxes and maintain the same margin as before would further raise the prices of cigarettes further.

Thus, the tax burden would be shifted to the consumers and hence majorly borne by them.

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A builder only has a few properties available in a development. He feels that it is no longer necessary to have his onsite sales
USPshnik [31]

Answer:

An open listing

Explanation:

In real estate an open listing is one in which the owner of a property contracts more than one agent to sell the property. The agent with the winning bid will eventually sell the property.

The opposite of this is the exclusive listing where the property owner only engages one agent to sell the property.

In the given scenario the builder feels that it is no longer necessary to have his onsite sales agent market these properties and decides to list the properties with a local brokerage firm. Thereby allowing all of the local firms to market these properties.

This is an open listing

5 0
3 years ago
Lynette Company's Inventory balance at 12/31/04 was $200,000 and was $188,000 at 12/31/05. Its Accounts Payable balance e at 12/
Viefleur [7K]

Answer:

A) $704,000.

Explanation:

For computing the cash payments we need to calculate the following amounts which are as follows

Total purchases = cost of goods sold + ending inventory - opening inventory

= $720,000 + $188,000 - $200,000

= $708,000

Now cash payment to merchandise is

= Beginning account payable balance + purchased made - ending account payable balance

= $80,000 + $708,000 - $84,000

= $704,000

Hence, the correct option is A. $704,000

3 0
3 years ago
On August 1 of Year 1 Accounting Associates (AA) collected $1,200 cash for consulting services to be provided for one year begin
igor_vitrenko [27]

Answer:

c) Unearned Revenue $ 500, Revenue $ 500

Explanation:

When the cash was received on August 01, no accounting services were provided so the  entry would have been:

Cash Debit                                 $ 1,200

Unearned revenue Credit                          $  1,200

Unearned Revenue is a liability account

On December 31, a recognition needs to be made for the services revenue earned and hence the amount for 5 months amounting is debited to  unearned revenue and revenue credited with $ 500.  

6 0
3 years ago
G dixon company produced 6,000 units of product that required 1.5 standard hours per unit. the standard fixed overhead cost per
sweet [91]
Given:
Actual Production 6,000 units @ 1.5 standard hours per unit.
Budgeted hours: 10,000 
Fixed overhead cost per unit is $0.50 per hour.

6000 units * 1.5 std. hrs/unit = 9,000 hours

Actual hours: 9,000 hours * $0.50 per hour = $4,500
Budgeted hours: 10,000 hours * $0.50 per hour = $5,000

Fixed Factory Overhead Volume Variance = $5,000 - $4,500 = $500 UNFAVORABLE. 

It is unfavorable because the production is inefficient. It is more favorable if the produced units are higher than 6,000 units and the actual hours of production are more than the budgeted hours of production. 
3 0
3 years ago
An earned value report shows: how much money has actually been spent so far on the project. slippages in performance measures fo
Fynjy0 [20]

An earned value report will likely show all of these measures.

8 0
3 years ago
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