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Jlenok [28]
4 years ago
14

In the market for widgets, the supply curve is the typical upward-sloping straight line, and the demand curve is the typical dow

nward-sloping straight line. The equilibrium quantity in the market for widgets is 200 per month when there is no tax. Then a tax of $5 per widget is imposed. As a result, the government is able to raise $800 per month in tax revenue. We can conclude that the equilibrium quantity of widgets has fallen by
A. 40 per month.
B. 50 per month.
C. 75 per month.
D. 100 per month.
Business
1 answer:
inessss [21]4 years ago
6 0

Answer:

The correct answer is A.

Explanation:

Giving the following information:

The equilibrium quantity in the market for widgets is 200 per month when there is no tax. Then a tax of $5 per widget is imposed. As a result, the government can raise $800 per month in tax revenue.

We need to find the level of demand that allows the government to raise $800 per month.

Q=Total Tax/Unitary Tax

Q= 800/5

Q= 160

The new equilibrium is 160 units. Therefore, the equilibrium has fallen 40 units.

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Aaron Corporation, which has only one product, has provided the following data concerning its most recent month of operations: S
Y_Kistochka [10]

Answer:

Product cost= $75

Explanation:

Giving the following information:

Variable costs per unit:

Direct materials $17

Direct labor $47

Variable manufacturing overhead $11

Under the variable costing method, the unitary product cost is calculated using the direct material, direct labor, and unitary variable overhead:

Product cost= 17 + 47 + 11= $75

6 0
3 years ago
Market speculation resulted in which of the following? a. Stocks became overvalued. c. People were afraid to withdraw money from
mihalych1998 [28]
Its A) STOCKS BECAME OVERVALUED.

IM SURE ITS THE RIGHT ANSWER
4 0
3 years ago
The Appraisal Department of Swifty Bank performs appraisals of business properties for loans being considered by the bank and ap
-BARSIC- [3]

Answer:

(a) In case when Appraisal Department has excess capacity then minimum transfer will be:

($130.21 - $7.82) = $122.39

Minimum Transfer Price = $122.39

(b) In case when Appraisal Department has no excess capacity then minimum transfer price will be:

($130.21 - $7.82) + ($163 - $130.21) = $155.18

Minimum Transfer Price = $155.18

(c) No, the management should not force to charge the Home- Loan department only $150.42.

3 0
3 years ago
A price ceiling creates a shortage when it is set
Setler [38]

Answer:

D. lower than the equilibrium price.

Explanation:

Markets are at equilibrium where demand = supply & demand, supply curves intersect.

Price ceiling is maximum price mandated by the government at which a good can be sold in the market. It is usually below equilibrium price, set to bring necessity goods under affordable price bracket of poor people.

This artificially reduced price creates excess demand or shortage (less supply), because at the lower price - demand is more but supply is less.

For more , refer : brainly.com/question/14580944#

7 0
4 years ago
HELP!!!!!!! Draw a supply and demand graph for the given scenario
faltersainse [42]

The demand shifter is the expected increase in the price of the lab coats.

The equilibrium price and quantity would increase.

<h3>What would happen to equilibrium price and quantity?</h3>

When there is an expectation of an increase in the price of lab coats, people would want to buy more lab coats now to avoid buying lab coats at a high price next week.

As a result, the demand curve for lab coats shifts to the right. The equilibrium price and quantity would increase.

Please find attached the required diagram. To learn more about the demand curve, please check: brainly.com/question/25140811

#SPJ1

8 0
2 years ago
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