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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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A company determined that the budgeted cost of producing a product is $30 per unit. On June 1, there were 80,000 units on hand,

gtnhenbr [62]

Answer:

c) $9,000,000

Explanation:

The cost of good sold = Cost per unit × Quantity sold

Quantity sold = 300,000, cost per unit = $30

The cost of sold = $30 × 300,000 = $9,000,000

This can be confirmed as follows:

Unit

opening inventory 80,000

Production(see note below) 340,000

Available or sale 420,000

Closing inventory (120,000)

Units sold 300,000

Cost of units sold = 300,000 × $30 = $9,000,000

Note :

Production budget = sales budget + closing inventory - opening inventory

= 300,000 + 120,000 - 80,000 = 340,000 units

6 0

2 years ago

Making formal statements, holding rites and rituals, utilizing employee training and coaching, demonstrating how a leader reacts

Genrish500 [490]

Answer:

Effect Corporate Change

Explanation:

Making formal statements, holding rites and rituals, utilizing employee training and coaching, demonstrating how a leader reacts to a crises, being a role model, and giving rewards, promotions, and bonuses are some of the teaching methods that organizations can utilize to effect corporate change. Change is one of the important and most difficult process for any organization. It needs to be carried out slowly as it has been manifested in the above given statement as well. Employees need to be given training, promotions, rewards and bonuses, they must be listened, their concerns should be addressed in order to make change process easy and smooth.

8 0

2 years ago

The management of GH Apparel has thoroughly analyzed the market and recognizes the wants and needs of different customer groups.

Sergio039 [100]

Answer: Market-oriented

Explanation:

The market oriented organization is one of the type of business approach that producing the various types of products and the services according to the customer requirement or desire.

The main aim of the market oriented organization is that they focus on the selling and also designing goods and the services that satisfied the consumer desire.

According to the given scenario, the management of the GH apparel is the market oriented organization as it properly analyzed the market and also recognize the actual requirement of the customer.

Therefore, Market-oriented is the correct answer.

5 0

2 years ago

After 160 customer reviews for the hotel, 65% were Excellent

Aneli [31]

Answer: 104 reviews

Explanation:

Number of customers reviews = 160

Percentage of customer reviews that were excellent= 65%

Number of customer reviews that were excellent will be:

= 65% × 160

= 65/100 × 160

= 0.65 × 160

= 104

104 reviews were excellent.

4 0

2 years ago

Barton Industries has operating income for the year of $3,700,000 and a 25% tax rate. Its total invested capital is $18,000,000

rusak2 [61]

Answer:

1,875,000 Economic Value Added

Explanation:

Net Operating Profit After Taxes - Invested Capital x Weighted Average Cost of Capital = Economic Value added

This represent the return on the shareholders after their investment return is paid. It is the value generated from the investent resources.

3,700,000 x ( 1- 0.25 ) = 2,775,000 Operating Income after taxes

18,000,000 x 5% = (900,000) Required Return

1,875,000 Economic Value Added

4 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?