Answer:
creates a shortage
Explanation:
Price ceiling is when the government or an agency of the government sets the maximum price for a product. It is binding when it is set below equilibrium price.
Because price is set below equilibrium price, demand would outstrip supply and this would lead to a shortage
Effects of a price ceiling
1. It leads to shortages
2. it leads to the development of black markets
3. it prevents producers from raising price beyond a certain price
4. It lowers the price consumers pay for a product. This increases consumer surplus
Answer:
$12,000
Explanation:
Calculation to determine the amount of Wages Expense recorded on the next payday, Saturday, April 3
Using this formula
Wages Expense=Daily payroll *2 days
Let plug in the formula
Wages Expense=$6,000*2 days
Wages Expense=$12,000
Therefore the amount of Wages Expense recorded on the next payday, Saturday, April 3 is $12,000
Answer:
Price =[PVF15%,1*D1]+[PVF15%,2*D2]+[PVF15%,3*D3]+[PVF15%,4*D4]+[PVF15%,4*Terminal value at year4 ]
60 = [.86957* 1.3]+[.75614*1.69]+[.65752*2.197]+[.57175*2.8561]+[.57175*TV]
= 1.1304+ 1.2779+ 1.4446+ 1.6330+ .57175TV
60 = 5.4859+.57175TV
Terminal value = [60-5.4859]/.57175
= 54.5141/.57175
= $ 95.3460
Terminal value=D4(1+g)/(Rs-g)
95.3460 =2.8561(1+g)/(.15-g)
95.3460(.15-g)= 2.8561-2.8561g
14.3019- 95.3460g = 2.8561-2.8561g
95.3460g-2.8561g = 14.3019-2.8561
92.4899 g = 11.4458
g = 11.4458/92.4899
= .1238 or 12.38%
Growth after year4 = 12.38%
**D1 =1(1+.30)=1.3
D2 =1.3(1+.3)=1.69
D3 = 1.69(1+.3)= 2.197
D4= 2.197(1+.3)= 2.8561
Answer:
Total cash collection= $62,000
Explanation:
Giving the following information:
40% of the sales are for cash and 60% are on credit. For the credit sales, 50% are collected in the month of sale, and 50% the next month.
Sales:
January $30000
February $90000
March $50000
<u>Cash collection March:</u>
Sales in account February= (90,000*0.6)*0.5= 27,000
Sales in account March= (50,000*0.6)*0.5= 15,000
Sales in cash March= (50,000*0.4)= 20,000
Total cash collection= $62,000
GDP is a Gross Domestic Product it including exports minus imports.
Hope it helped
