Answer:
(q2 - q1)
Explanation:
I have uploaded the picture the question refers to below.
We can see that under a price ceiling of $0, the quantity of kidneys supplied is Q1, and if the price ceiling is removed, and the market is allowed to reach equilibrium, the new quantity of kidneys supplied is Q2, so the increase in the supply of transplanted kidneys can be found by the formula (q2 - q1)
Answer:
5%
Explanation:
a) What was the growth rate in sales between years 1 and 2
Growth rate measures the increase in the level of sales over a period of time
Growth rate from year 1 to 2 = (increase in sales from year 1 to 2 / sales in year 1) x 100
increase in sales from year 1 to 2 = 236.25 - 225 = 11.25
(11.25 / 225) x 100 = 5%
Let us calculate the total tax this firm has to pay. For the first 50000$, it has to pay 15% of it in taxes. Thus: 50000*15%=7.500$ in taxes. For the next 25000$ (from 50k to 75k) we have a tax rate of 25%. Hence, the tax on this sum is 25000*25%=6.250$ . For the next 25000$ (from 75k to 100k), the company has to pay 34% of this income in taxes. Hence the tax for this sum is: 25000*34%=8500$. Finally, for the rest of its income, which is 118.700$ (its income above 100k), it has to pay taxes at a rate of 39%. Hence, the tax is 118.700*39%=46293$. We have then that the total tax that the firm pays is the sum of the quantities we calculated. 7500$+6250$+8500$+46293$=68543$. To calculate the average tax rate of the company, we have to divide the total tax of the firm by the total income (68.543/218700); this yields 0,3134 or 31,34%.
