1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
shutvik [7]
3 years ago
10

Suppose that the federal government places a binding price floor on chocolate. To help support the price floor, the government p

urchases all chocolate that consumers do not buy. If the price floor remains in place for a number of years, what do you expect to happen to the quantity of chocolate supplied by producers?
a. It will decrease.
b. It will increase.
c. It will remain the same.
Business
1 answer:
postnew [5]3 years ago
8 0

Answer:

The correct answer is letter "A": It will decrease.

Explanation:

Price floors are price levels the government of a country sets to protect the price of a good will not fall to a level in which producers will not be able to make profits. Since the price level is unlikely to fall,<em> over the years consumers will lose interest in that product and start looking for a substitute at lower prices</em>. <em>The quantity demanded of the price-floor good drops under that scenario.</em>

You might be interested in
Which entities constitute the primary and secondary stakeholders of a business, respectively? __________ are some of the primary
horsena [70]
The correct answers are as follows:
1. The primary stakeholders of a business are defined as those individuals who engage internally in economic transactions with the company. Primary stakeholders have direct interests in the company and they are affected by the policies, objectives and the actions of the company.
Secondary stakeholders are those individuals who do not have direct interest in the company.
2. SHAREHOLDERS AND CUSTOMERS are some of the primary stakeholders of a business. Other examples of primary stakeholders are: suppliers, creditors, employees, investors, etc.
The primary stakeholders of a company depend on the financial well being of the company for their own benefits and the company also depends on their efforts in order to succeed.
3. THE GENERAL PUBLIC AND THE COMMUNITY IN WHICH A COMPANY IS LOCATED are some of the secondary stakeholders of a business. Other examples of secondary stakeholders are: the media, business support groups and activist groups.
It is very important for a company to identify and work with its secondary stakeholders. Companies who recognize and cooperate with their secondary stakeholders usually achieve good reputation and goodwill and always get supports for their expansionary efforts.
3 0
3 years ago
Read 2 more answers
All else equal, an increase in savings will cause capital stock to:
ElenaW [278]
<span>If all else equal, an increase in savings will cause capital stock to increase. Capital stocks signifies the position of the economy's productivity. If there is more savings, there is the possibility of increase in accumulating capital because business owners can buy new equipment or add new workers. But sometimes, it does not necessarily mean that if there is higher savings, there is also higher investments and may not lead the people to invest more.</span>
7 0
3 years ago
Recently the corporate tax law in the U.S. changed so that firms that previously faced a marginal tax rate of close to 40% now p
garri49 [273]

Answer:

a.) increased the after-tax cost of debt

Explanation:

Missing options are:

a.) increased the after-tax cost of debt

b.) did not change the after-tax cost of debt

c.) increased the value of the deduction for interest expense

d.) decreased the after-tax cost of debt

The after tax cost of debt is calculated by multiplying the debt's principal x interest rate x (1 - tax rate). If the tax rate decreases, the after tax cost of debt increases. e.g.

$1,000 owed at 6%, when tax rate was 40% ⇒ after tax cost of debt = $1,000 x 6% x (1 - 40%) = $36 or 3.6%

now, $1,000 owed at 6%, when tax rate is 21% ⇒ after tax cost of debt = $1,000 x 6% x (1 - 21%) = $47.40 or 4.74%

4 0
3 years ago
Thailand has a comparative advantage in rice and an absolute advantage in cell phones Indonesia has a comparative advantage in c
Aleonysh [2.5K]

Answer:

d. Thailand should export rice and import cell phones

Explanation:

Analyzing the question, it is correct to say that Thailand should export rice and import cell phones.

To understand why this statement is correct, we need to understand the concept of comparative advantage and absolute advantage.

The comparative advantage occurs when a country has great efficiency in producing a certain good, that is, the production is specialized and therefore advantageous in relation to another country. So it is correct to say that Thailand, having a comparative advantage in rice, should export rice to achieve greater economic advantage.

The absolute advantage, on the other hand, corresponds to the production of a good with lower costs than another country, but Thailand should import cell phones because Indonesia has a comparative advantage in cell phones, which makes it more competitive than Thailand in this segment.

3 0
2 years ago
SKRAM Corporation is appealing directly to the shareholders of IDNIC Corporation to acquire shares of IDNIC stock. This appeal i
soldi70 [24.7K]

Answer:

A hostile takeover with IDNIC corporation as the target company.

Explanation:

Since SKRAM is appealing directly to shareholders of IDNIC to acquire stocks of IDNIC corporation, it means they have a target of getting them to have a certain percentage of ownership in IDNIC because owning a stock in a company means having a percentage of ownership in that company.

This kind of appeal can be likened to trying to an aggressive push to make the shareholders take over the IDNIC corporation.

5 0
3 years ago
Other questions:
  • On August 1, 2018, Trico Technologies, an aeronautic electronics company, borrows $20.0 million cash to expand operations. The l
    12·1 answer
  • The span of control for a manager:
    10·1 answer
  • Before year-end adjusting entries, Waterway Industries's account balances at December 31, 2020, for accounts receivable and the
    10·1 answer
  • TB MC Qu. 6-70 Awtis Corporation has a margin of ... Awtis Corporation has a margin of safety percentage of 25% based on its act
    14·1 answer
  • Select the correct answer.
    15·1 answer
  • The balance in the supplies account before adjustment at the end of the year is $868. The proper adjusting entry if the amount o
    8·1 answer
  • What structure is one of the most common types because it separates the specialized knowledge of each functional area through ho
    10·1 answer
  • Hayden's team purchased 100 shares of Tiffany and Co. stock for
    15·1 answer
  • What box is it please answer if u know :)<br> 1 2 or 3?
    6·2 answers
  • Q1: In about 200 words, write an essay analyzing the below case study using the SWOT framework.
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!