Answer:
Binding
$100
200
200
Shortage
Explanation:
A price ceiling is when the government or an agency of the government sets the maximum price for a good.
A price ceiling is binding when the price ceiling is below the equilibrium price.
To find the equilibrium price, equate qs to qd because at equilibrium, quantity supplied is equal to quantity demanded.
2P = 300 - P
3P = 300
P = 100
Equilibrium price is $100.
$100 > $90. Therefore, price ceiling is binding.
To find quantity supplied, plug in the value of P into the equation for quantity supplied
QS = 2(100) = 200
To find quantity demanded, plug in the value of P into the equation for quantity demanded
QD = 300 - 100 = 200
when price is below equilibrium price, quantity demanded increases while the quantity supplied decreases. This leads to a shortage.
I hope my answer helps you
If a fiscal policy change is going to exert a stabilizing impact on the economy, policy must add stimulus to demand during a slowdown but it should restraint the demand during an economic boom.
Fiscal policy is the policy in which the government spending and taxation is used to influence the economy.
Governments generally use fiscal policy to promote strong as well as sustainable growth in the economy and reduce the poverty too.
The role and objectives of fiscal policy which gained importance during the recent global economic crisis is when the different governments stepped in to support financial systems.
Governments starts the growth, and also mitigate the impact of the crisis on vulnerable groups through the use of fiscal policy.
To know more about fiscal policy here:
brainly.com/question/27250647
#SPJ4
Answer:If the firm had sharp seasonal sales patterns, or if it grew rapidly during the year, many ratios would most likely be distorted.
Explanation: Fluctuations in Economics patterns have distorting effects on the ratios of a company or an economy especially if the the seasonal patterns has been consistent for a certain period. THE VALIDITY OF MOST RATIOS ARE SEVERELY AFFECTED BY SHARP CHANGES WHICH MAKES ECONOMIC WATCHERS FEEL THE RATIOS ALREADY ANALYSED ARE NOT VALID.
A consistent flow pattern is desired in an economy and in business Organisation as it helps to give Economic watchers enough confidence in the ratios already existing.
Answer:
employer payroll taxes:
- FICA taxes (social security and medicare) = $39,325 ⇒ employer's FICA taxes are identical to the withheld FICA taxes from employees
- unemployment taxes = $3,825
- total = $39,325 + $3,825 = $43,150
1) total labor cost = total wages + total employer payroll taxes = $550,000 + $43,150 = $593,150
2)
March 31, wages and salaries
Dr Wage expense 550,000
Cr Cash 459,800
Cr Federal income tax withholding payable 50,875
Cr FICA taxes withholding payable (employees) 39,325
3)
March 31, employer payroll taxes
Dr FICA taxes expense 39,325
Dr Unemployment tax expense 3,825
Cr FICA taxes payable 39,325
Cr Unemployment taxes payable 3,825
At breakeven point, the cost is equal to the revenue. This also means that the net profit is equal to zero. If we let x be the number of units sold or produced, the total costs and revenue are calculated as follows:
Total Cost = 10x + 10,000
Total Revenue = 20x
Equation both,
10x + 10,000 = 20x
The value of x from the equation is 1000.
Answer: 1000
