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Aneli [31]
3 years ago
14

Suppose a tax of $3 is imposed on each new garden hose that is sold, resulting in a deadweight loss of $22,500. The supply curve

is a typical upward-sloping straight line, and the demand curve is a typical downward-sloping straight line. Before the tax was imposed, the equilibrium quantity of garden hoses was 100,000. We can conclude that the equilibrium quantity of garden hoses after the tax is imposed is
Business
1 answer:
liq [111]3 years ago
4 0

Answer: Equilibrium quantity of garden hoses after the tax is imposed is 85000.

Explanation:

Given that,

Dead weight Loss = $22500

Tax amount per unit (t) = $3

Equilibrium quantity before tax, Q_{b} = 1,00,000 units

Equilibrium quantity after tax, Q_{a} = ?

Dead weight Loss = \frac{1}{2} \times t \times (Q_{b} - Q_{a})

22500 = 0.5 × 3 × (100000 - Q_{a})

Q_{a} = 85000 units

∴ Equilibrium quantity of garden hoses after the tax is imposed is 85000.

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Answer:

c. $3,200 favorable.

Explanation:

We know that

Total controllable cost variance = Budgeted overhead cost - actual overhead cost

where,

Budgeted overhead cost =  Variable overhead + Fixed overhead

where,

Variable overhead = 40,000 units × $2 = $80,000

And, the fixed overhead = $72,000

So, the budgeted overhead = $152,000

And, the actual one is $148,800

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= $3,200 favorable

7 0
3 years ago
The ability to meet short-term obligations and to efficiently generate revenues is called?
Rama09 [41]

The ability to meet short-term obligations and efficiently generate revenues is called Liquidity and efficiency.

When a financial asset or security may be quickly and easily converted into cash without depreciating in value, this is referred to as having liquidity.

In other words, the degree to which an asset may be swiftly purchased or sold on the market at a price representing its underlying value is referred to as liquidity. Due to its ease and speed of conversion into other assets, cash is regarded as the most liquid asset.

Business efficiency is the amount of output a firm or organization can create given the time, money, and resources available. In other words, a company's efficiency refers to how well it can turn resources like labor, capital, and raw materials into services and goods that generate income.

To learn more about Liquidity and Efficiency refer to:

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8 0
1 year ago
Value-based marketing requires that firms charge a price that customers perceive as giving them a good value for the product the
PilotLPTM [1.2K]

Answer:

True

Explanation:

Value-based marketing is a shift from product centered to customer centered approach. Customer values and ethics are the primary drivers of this strategy.

When value- based pricing is done, the customer's perception of the value of goods and services is taken into consideration.

This is different from basing price on product cost or historical price.

3 0
3 years ago
According to Adam Smith, why do people work hard?
MrRa [10]

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Money

Explanation:

they need money because to live in a house get a car,food etec

5 0
3 years ago
Employees may be required to sign, as a condition of employment, an agreement that they will not leave the company and go to wor
Fittoniya [83]

Answer:

Option "A" is the correct answer to the following question.

Explanation:

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