Resources are used efficiently in the sunhat market because when marginal social benefit equals marginal social cost, total surplus is maximized. Thus, From the given four options only the option B is the correct option.

MSC = Marginal Social cost

MSB = Marginal Social Benefit

It is becuase in the competitive market, the quantity that is supplied in the market in same to the quantity which is demanded.

6 0

2 years ago

An increase in the price of cheese crackers from $2.25 to $2.45 per box causes suppliers of cheese crackers to increase their qu

Juliette [100K]

Answer:

The correct answer is C) "elastic, and the price elasticity of supply is 1.74"

Explanation:

Formula:

( (Qf - Qi) ÷ ((Qf + Qi) ÷ 2) ) ÷ ( (Pf - Pi) ÷ ((Pf + Pi) ÷ 2) )

Quantity Price

Lets remplace:

Qi = Initial Quantity = 125 boxes

Qf = Final Quantity = 145 boxes

Pi = Initial Price = $2.25

Pf= Final Price = $2.45

Quantity Price

(145 - 125) ÷ ((145 + 125) ÷ 2) ÷ (2.45-2.25) ÷ ((2.45+2.25)÷ 2)

= (20) ÷ (270÷ 2) = (0.2) ÷ (4.7 ÷ 2)

= 20 ÷ 135 = 0.2 ÷ 2.35

= 0.148 = 0.085

Finally: we divide the result of quantity into the result of price

= 0.148 ÷ 0.085

= 1.74

To classify into elastic or inelastic:

When Pes > 1, then supply is price elastic

When Pes < 1, then supply is price inelastic

When Pes = 0, supply is perfectly inelastic

Answer: <em>Elastic, and the price elasticity of supply is 1.74</em>

4 0

2 years ago

What is the payment you receive for allowing a financial institution or corporation to use your

padilas [110]

Answer:C

Explanation: I have worked for 3 banks over the course of the last 10 years.

5 0

2 years ago

Which accounting assumption or principle is being violated if a company is a party to major litigation that it may lose and deci

joja [24]

The accounting assumption is the full disclosure. For a business, the full disclosure rule requires an organization to give the important data with the goal that individuals who are acclimated to perusing monetary data can settle on educated choices concerning the organization.
A disclosure is an extra data connected to an element's money related proclamations, normally as a clarification for exercises which have fundamentally affected the substance's monetary outcomes.

8 0

3 years ago