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Alexxandr [17]
3 years ago
14

Suppose the equilibrium price of a pound of bacon is $3.50. The government decides that people have a right to a pound of bacon

at an affordable price. To protect this new right, the government passes a law setting a maximum price of $1.50 for bacon. As a result of the legislation, there will be Choose one: A. either an excess supply or an excess demand for bacon; it depends on the market reaction to the price control. B. neither an excess supply nor an excess demand for bacon. C. an excess supply of bacon. D. an excess demand for bacon.
Business
1 answer:
VikaD [51]3 years ago
6 0

Answer:

The correct answer is option D.

Explanation:

The equilibrium price of a pound of bacon is $3.50.

In order to protect the consumers, the government imposes a binding price ceiling of $1.50.  

This price ceiling will create a shortage of bacon or an excess demand for bacon in the market.  

Because of the law of demand and law of supply, at price lower than the equilibrium price, the quantity demanded will be higher while the quantity supplied will be lower.  

This difference between quantity demanded and quantity supplied will create an excess demand in the market.

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MONEY Deanna and Lise are playing games at the arcade. Deanna started with $15, and the machine she is playing costs $0.75 per g
goblinko [34]

Answer:

The answer is: after 8 games

Explanation:

You can solve this problem in two ways:

                                        Deanna                        Lise

Start with                            $15                            $13

After 1 game                      $14.25                       $12.50

After 2 games                   $13.50                       $12.00

After 3 games                   $12.75                        $11.50

After 4 games                   $12.00                        $11.00

After 5 games                   $11.25                         $10.50

After 6 games                   $10.50                        $10.00

After 7 games                    $9.75                         $9.50

After 8 games                   $9.00                        $9.00

Or you can solve this equation:

= (price of arcade D - price of arcade L) / (Deanna's money - Lise's money)

= ($0.75 - $0.50) / ($15 - $13) = $0.25 / $2 = 8

7 0
3 years ago
When a movie theater charges a lower ticket price for senior citizens and/or students, the movie theater is engaging in_________
MariettaO [177]

Answer:

b) third-degree price discrimination.

Explanation:

The price gouging happens on prices when is carried out by the seller, goods, services or goods to a higher level than what is considered acceptable or fair and potentially considered unethically. This usually occurs after a demand or supply shock. Common examples include price increases for basic needs after hurricanes or other natural disasters.

First-degree discrimination (perfect price discrimination) appears when a business charges the maximum possible price for each unit consumed because prices are diverse among some units. In this case, where a company charges a different price for every good or service sold.

Second-degree price discrimination is the concept in which a company charges a different price when there are demands for different quantities consumed, such as quantity discounts on bulk purchases.

Third-degree price discrimination is the case in which a company charges a different price to different consumer groups. This is the type of most common type of price discrimination. If we see in the question there is given distinctive ticket price offers to senior citizens and/or students. That’s why we should choose third-degree price discrimination.

8 0
3 years ago
If the Federal Reserve tightens the money supply, other things held constant, short-term interest rates will be pushed upward, a
Sophie [7]

Answer:

The statement is true

Explanation:

Tightening monetary policy or curbing money supply in an economy is a move by Federal Reserve to control inflation or bring down over-heated economic growth.

Money supply is curbed by increasing short-term interest rates, thereby increasing cost of borrowing and making borrowing less attractive to public. This increase in short-term rates, also called Federal fund rates are usually greater than long-term interest rates prevailing in the market.

6 0
3 years ago
Three months ago, Central Supply stock was selling for $51.40 a share. At that time, you purchased five put options on the stock
oee [108]

Answer:

$4,350

Explanation:

Calculation to determine your net profit or loss on this investment

Net profit = (-$0.60 - $42.70 + $52) × 100 × 5

Net profit= $4,350

Therefore your net profit or loss on this investment is $4,350

7 0
2 years ago
The operation and maintenance of a company warehouse is an example of which component of the business process?
Serjik [45]
Facilities....................................................................................................................................................
3 0
3 years ago
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