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4 years ago

When does the elasticity of supply of commodity called equal to unity?

Business

1 answer:

Gemiola [76]4 years ago

3 0

Answer:

When a percentage change in price leads to the same percentage change in the quantity supplied. This means that supply is unit elastic

Explanation:

Price elasticity of supply measures the responsiveness of quantity supplied to changes in price of the good.

Price elasticity of supply = percentage change in quantity supplied / percentage change in price

Supply is unit elastic if a small change in price has an equal and proportionate effect on quantity supplied.

For example, a 20% increase in price leads to 20% increase in the quantity supplied

Elasticity of supply = 20% / 20% = 1

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A tax meets the standard of efficiency if it generates enough revenue to pay for the public goods and services provided by the g

Veseljchak [2.6K]

Answer:

(B) False.

Explanation:

There are other ways to measure the efficiency of a tax system. It is not to generate enough revenue to pay for the public goods and services provided by the government, but just to meet the primary needs of the society.

An efficient tax system must not be complicated, and easy to pay by all. There must be transparency as how the people pay and the tax money is spent by the government.

8 0

3 years ago

A group of medical doctors are interested in incorporating their business. there is no advantage due to the costs involved. fals

Virty [35]

There is an advantage if a group of medical doctors will invest to incorporate their business regardless of the costs involved. In fact, many individuals choose to incorporate to obtain limited liability. In some cases, they may also receive tax savings by doing so. (FALSE)

6 0

3 years ago

Matt and Meg Comer are married and file a joint tax return. They do not have any children. Matt works as a history professor at

Svetlanka [38]

a) Total Tax Liability is $10,579 when

STCG=9000

STCL=(2000)

LTCG=15000

LTCL=(6000)

b) Total Tax Liability is $8504 when

STCG=1500

STCL=0

LTCG=13000

LTCL=(10,000)

Explanation:

Part a

Total Tax Liability: $10,579

STCG=9000

STCL= (2000)

NET STCG= $7,000

LTCG=15000

LTCL= (6000)

NET LTCG=$9,000

Salary=97000

Net STCG=7000

Net LTCG=9000

AGI=$113,000

Standard Deduction=(24400)

Taxable Income=$88,600

Preferentially taxed income= (9000)

Income taxed at ordinary prices $79,600. Note that tax 9086+143=9229

Income subject to capital gains prices $9,000. Note that (tax(9000x15%)=1350)

Hence, total tax liability = 9229+1350 = 10579

Comer's taxable income ($79,600) before capital gains goes above the maximum 0% amount of $78,750. Hence, the capital gain is taxed at 15%.

part b

STCG =1500

STC= 0

NET GAIN=1500

LTCG=13000

LTCL=(10000)

NET GAIN=3000

Salary=97000

Net LTCG=3000

Net STCG=1500

AGI = 101,500

Std Ded (24,400)

Taxable Income= AGI-Standard Deduction

 Taxable Income=101,500-24,400

 Taxable Income=77,100

Pref Taxed Income (3000)

Income @ ordinary rates = 74100 Note that tax is 1940+6564=8504)

Income subject to capital gains rates = 3000 Note that (tax (3000x0%)=0)

Total tax liability

 $8,504 + $0

 $8,504

Comer's taxable income is $74,100 (before capital gains). It is below the maximum 0% amount. Hence, $3,000 is taxed at zero percent.

8 0

4 years ago

Maas, Inc., sells washers and dryers that include a maximum one-year warranty covering parts. Past experience shows that warrant

Assoli18 [71]

Answer:

See explanation section

Explanation:

Journal entry to be recorded -

Debit Warranty expense $8,000

Credit Estimated warranty liability $8,000

Calculation:

Net sales = $400,000

warranty expenses = 2% of the net selling price.

Therefore, estimated warranty expense = $400,000 × 2% = $8,000

Since, the company does not pay the expenses, a liability arises. Since we are estimating the value from past experience, the liability will be estimated.

3 0

3 years ago

alberto sells his firewood in a competitive market. at a price of $140 per load, the total cost at alberto's profit-maximizing o

Nat2105 [25]

Profit is equal to the product of the price of the production and the average total cost.

How do you find the quantity of perfect competition that maximizes profit?

When marginal revenue equals marginal cost, or when MR = MC, a fully competitive firm will make the decision that will maximize its profits.

What is the production that the company produces at a profit?

The production rule listed below is used by a competitive business to increase profits: The output level that generates the most profit for the company is where the marginal cost (MC) just touches the product price and where the MC curve is sloping upward.

Learn more about Profit here:

brainly.com/question/26215194

#SPJ4

3 0

1 year ago