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mariarad [96]
3 years ago
5

Suppose a tax of $3 per unit is imposed on a good. The supply curve is a typical upward-sloping straight line, and the demand cu

rve is a typical downward-sloping straight line. The tax decreases consumer surplus by $3,900 and decreases producer surplus by $3,000. The tax generates tax revenue of $6,000. The tax decreased the equilibrium quantity of the good from A. 2,400 to 2,000. B. 2,600 to 2,000. C. 3,000 to 2,400. D. 2,000 to 1,500.
Business
1 answer:
Aleks [24]3 years ago
6 0

Answer:

B. 2,600 to 2,000.

Explanation:

tax revenue = units x tax rate

units = tax revenue / tax rate = 6,000/3 = 2,000

2,000 will be the quantity after taxes.

6000 goverment revenue - 3900 consumer surplus - 3000 producer surplus

900 deathweight loss

(tax x ↓unit)/2 = deathweight loss

(3 x ↓unit)/2 = 900

(3 x ↓unit) = 900 *2

↓unit = 1800/3 = 600

<u>It decrease to 2000 from 2600</u>

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In the multiplex industry, Vibrant Movies Inc. is an upscale multiplex that focuses on superior customer experience. The firm ch
PolarNik [594]

Answer:

The answer is: D) blue ocean strategy

Explanation:

Blue Ocean strategy is about selling a good product or service at a low price in order to enter new markets or gain market share.

In this case, True Movies is selling a superior movie experience at the price of a low-cost movie theater. They are trying to take away customers from both Vibrant Movies and Global Cine.

4 0
3 years ago
Dimitri has several apple trees in his yard, and apples are a perfectly competitive market with a price of $2 per pound. if dimi
Alinara [238K]
The total revenue and the marginal revenue when he sells the 100th pound of apples is 
total revenue is $200 (100 * 2) and marginal revenue is $2 (the price of the apple per pound in the market)

So the answer is the total revenue of Dimitri is $200 while the marginal revenue is $2.
4 0
4 years ago
Which of the following best describes the law of supply and demand?
Zina [86]

Answer:

D. When a desirable product or service is scarce, its value increases.

Explanation:

Demand is the volume of a commodity or service that buyers are willing to purchase in the market at a given price. Supply refers to the quantity of service of a product that suppliers are willing to avail in the market for sale. The law of supply and demand illustrates the interactions between buyers and sellers.

As prices increase, sellers are willing the supply more, but buyers will want to buy fewer quantities. The opposite is also true. Products that provide a higher utility value will always attract high prices. If such products are scarce, their prices are bound to go even higher.

7 0
3 years ago
Required information {The following information applies to the questions displayed below. At the beginning of Year 2, the Redd C
kolezko [41]

Answer:

Assets:

Cash 8200 - 520 - 5243 - 820 - 620 + 9016 = 10,013

Receivables 9200 - 9200 = 0

Inventory 2200 + 5700 + 520 - 350 - 107 - 6200 + 520 - 383 = 1900

Liabilities:

Accounts Payable 5700 - 350 - 5350 = 0

Common Stock 7700 = 7700

Explanation:

Redd Company has incurred multiple transactions which will require adjustments before financial statements are prepared. These transaction will have effects on both sides of the accounts assets and liabilities. Common stock is not affected by the transactions as this is equity section.

8 0
3 years ago
Short Company purchased land by paying $15,000 cash on the purchase date and agreed to pay $15,000 for each of the next ten year
gogolik [260]

Answer:

Option D is the correct answer,$ 88,338.48  

Explanation:

The liability reported in the balance sheet can be computed by using the pv formula in excel which is stated thus:

=-pv(rate,nper,pmt,fv)

rate is the incremental borrowing rate of 11% per year

nper is the number of payments required to settle the obligation which is 10

pmt is the amount of yearly payment in order to fully settle the debt owed which is $15,000 per year

fv is the future worth of total payments which is not unknown,hence taken as zero

=-pv(11%,10,15000,0)=$ 88,338.48  

The correct answer is $ 88,338.48  

3 0
3 years ago
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