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3 years ago

Why does a price floor lead to surpluses? Why does a price ceiling lead to shortages?

Business

1 answer:

Degger [83]3 years ago

7 0

Answer:

Shortage: there is more demand than there is at the equilibrium price. There is also less supply than there is at the equilibrium price, thus there is more quantity demanded than quantity supplied.

Your pretty much short in supply and cant fulfill the demand

While surplus

When a price floor is set above the equilibrium price, quantity supplied will exceed quantity demanded, and excess supply or surpluses will result.

Theirs a a large amount of supply due to the pricing most likely beign high

Explanation:

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The difference between supply and quantity supplied is that "supply" refers to the ___________ and "quantity supplied" refers to

yanalaym [24]

Answer:

a. curve; point on the curve

Explanation:

Supply refers to the supply curve. Changes in supply leads to movement of the supply curve either to the left or to the right.

Factors that cause change in supply:

A. Cost of production

B. Weather

C. Taxes

D. Number of suppliers

Quantity supplied is a point on th curve with reference to price. Changes in quantity supplied is represented by movement either up or down the supply curve. Changes in quantity supplied is caused only by changes in price.

I hope my answer helps you

4 0

3 years ago

Millions of producers working across the world cooperate to ensure that many more millions of consumers can have the goods and s

Serggg [28]

The actions of the millions of producers is driven by self interest.

<h3>Who is a producer?</h3>

A producer is an individual or firm that makes goods and services for consumers. For example, a farmer who plants apples is a producer. Also, the owner of the lemonade stand is a producer.

The goal of a producer is to earn profits all things being equal. Profits is when total revenue is greater than total cost.

To learn more about profit, please check: brainly.com/question/26181966

3 0

2 years ago

The Sealing Company has 1,500 bonds outstanding that are selling for $1,060 each. The company also has 5,000 shares of preferred

iris [78.8K]

The weight of the common stock as it relates to the firm's weighted average cost of capital is <u>35%</u>.

<h3>What is the weighted average cost of capital?</h3>

The weighted average cost of capital computes a firm's cost of capital based on the firm's average cost of capital from all sources: common stock, preferred stock, bonds, and other forms of debt.

The weight of the common stock can be determined by dividing the common stock market value by the total capitalization from all sources.

<h3>Data and Calculations:</h3>

Outstanding:

Bonds payable = $1,590,000 (1,500 x $1,060)

Preferred stock = $160,000 (5,000 x $32)

Common stock = $936,000 (36,000 x $26)

Total debts and equity = $2,686,000

Weight of common stock = 35% ($936,000/$2,686,000 x 100)

Thus, the weight of the common stock as it relates to the firm's weighted average cost of capital is <u>35%</u>.

Learn more about the weighted average cost of capital at brainly.com/question/14703616

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2 years ago

1. Although a promise to give value in the future is a valid consideration to support a contract, it does not constitute _______

Angelina_Jolie [31]

Answer:

1. sufficient

2. performed; HDC; holder

Explanation:

The holder in due course which is popularly referred to as the HDC is a person who has been given an instrument that is negotiable and not overdue in any form. The instrument has also been given in good faith which shows that the instrument is in good working condition. The HDC is eligible to purchase the instrument in a value for value exchange form.

8 0

3 years ago

Leslie works for a local ad agency as an intern. The agency is hired to develop an advertising campaign for a chain of coffee sh

Blizzard [7]

Answer:

With reference to the above scenario, "big ideas":

could become the bases of creative and successful advertising campaigns.

Explanation:

The 1st option is not correct as the statement "big ideas are impossible to develop as they are not applicable to retail chains" is not correct because ideas are required by every company.
The statement which states that big ideas are only needed in advertising for consumer services is not correct as every industry needs advertising.
The statement which states that big ideas are typically not the bases for effective advertising campaigns is also incorrect as big ideas are necessary fro effective advertising campaigns.
Big ideas are not limited to the advertisement of business to business scenario yet they are applicable to every kind of advertisement.
So the statement which states that big ideas can become the bases of creative and successful advertising campaigns is correct.

5 0

3 years ago

Why does a price floor lead to surpluses? Why does a price ceiling lead to shortages? ​

Why does a price floor lead to surpluses? Why does a price ceiling lead to shortages?