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Marina CMI [18]
3 years ago
15

In which of the following cases is it most likely that an increase in the size of a tax will decrease tax revenue? Answers: A) T

he price elasticity of demand is small, and the price elasticity of supply is large. B) The price elasticity of demand is large, and the price elasticity of supply is small. C) The price elasticity of demand and the price elasticity of supply are both small. D) The price elasticity of demand and the price elasticity of supply are both large.
Business
1 answer:
DiKsa [7]3 years ago
6 0

Answer:

The correct answer is option D.

Explanation:

An increase in the size of tax is likely to increase the tax revenue when the price elasticity of supply, as well as price elasticity of demand, are both large.  

The imposition of tax will cause an increase in the price of the product. If the price elasticity of demand is higher, an increase in the price will lead to a more than proportionate decrease in demand.  

At the same time, high price elasticity of supply means that when the tax is imposed the sellers will be able to reduce quantity more easily.  

So when less output is produced and demanded the tax revenue will also be lower.

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In the long run the prices charged by a firm in monopolistic competition will be
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Answer: The correct answer is "d. equal to average cost, including the opportunity cost of capital.".

Explanation: In the long run the prices charged by a firm in monopolistic competition will be equal to average cost, including the opportunity cost of capital.

In long-term monopolistic competition, the demand curve will be tangent to the average long-term cost and the price set at this level. The benefits will be equal to zero and therefore there will be no entry or exit of companies.

6 0
3 years ago
Suppose you work for a municipal water department for a city with 200,000 people, and your job is to design a program that ensur
olasank [31]

Answer: i really dont know im just trying to get points so i can ask a question

Explanation:

4 0
3 years ago
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At December 31, 2011 the accounting records of Gordon, Inc. contain the following items: If the Notes Payable is $10,000, the De
Vadim26 [7]

The question is incomplete. The complete question is as follows,

At December 31, 2011 the accounting records of Gordon, Inc. contain the following items:

Accounts Payable 2500

Land 30000

Building 31250

Notes Payable ?

Retained earnings 125000

Accounts Receivable 18750

Cash ?

Equipment 40000

Capital Stock 12500

If the Notes Payable is $10,000, the December 31, 2011 cash balance is:

Answer:

Cash = $30000

Explanation:

The accounting equation states that the sum of total assets is always equal to the sum of total liabilities plus total equity. We can state the equation as follows,

Total Assets = Total Liabilities + Total Equity

So,

(30000 + 31250 + 18750 + 40000 + Cash) = (2500 + 10000) + (125000 + 12500)

120000 + Cash = 12500 + 137500

Cash = 150000 - 120000

Cash = $30000

6 0
3 years ago
Three years after graduating from​ college, you get a promotion and a 16 percent raise. Your consumption habits change according
svlad2 [7]

Answer:

B. Inferior good

Explanation:

In this case, total income increased because of the promotion and a 16 percent raise. Because of this, the consumption of frozen hot dogs decreased. If the demand for a good or service decreases due to an increase in income, then this is an inferior good. This kind of goods are the opposite of normal goods, because the demand for those increase when there is an increase in income.

7 0
3 years ago
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Steve puts only dimes and quarters into his piggy bank. Right now he has five more dimes than quarters there, and they make $74.
larisa86 [58]

Answer:

There are 211 quarters and 216 dimes

Explanation:

To answer this question, we need to properly understand what a dime is and what a quarter is. A quarter is 25 cents while a dime is 10 cents in value.

Let the number of dimes present be d and the number of quarters present be q.

We are told that he has 5 more dimes than quarters.

Mathematically, this means that:

d - q = 5 or d = q+ 5 .......(I)

The total value there is $74.35. In cents, this has a value of 7435 cents.

Mathematically:

25q + 10d = 7435......(ii)

We substitute what we have in 1 in 2

25q + 10(q+5) = 7435

25q + 10q + 50 = 7435

35q + 50 = 7435

35q = 7435-50

35q = 7385

q = 7385/35

q = 211

Recall, d = q+ 5 ; d = 211 + 5 = 216

4 0
4 years ago
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