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NemiM [27]
3 years ago
7

Suppose the government wants to help the coffee industry, where many producers earn relatively little. It is considering two pos

sible policies to try to do this.
A. The first policy is a subsidy of a certain amount for each unit of coffee sold, physically paid to the seller. How would this policy affect the price of coffee paid by consumers, the after-subsidy price received by producers, and the quantity of coffee sold?
B. The second policy is a binding price floor on the price of coffee. How would this policy affect the price of coffee and the quantity of coffee sold?C. Would the policy in part (a) necessarily increase the total revenues of coffee producers (including their revenues from the subsidy)? What about the policy in part (b)?
Business
1 answer:
postnew [5]3 years ago
4 0

Answer:

i think your answer is A

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The correct answer is: high; little.

Explanation:

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Statements A and C are correct.

Explanation:

  • Book Value per share is the value shown in the balance sheet, which is calculated by:

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After putting values in the formula we get:

BV = \frac{700m}{35m} = 20

  • Market value per share is calculated on the bases of prices of share according to the market. For example, if your company has $10000 share outstanding and the price in market per share is 50 then the market value would be $500000.

So, we have to calculate market value per share for that we have to reverse the actual calculation, which means we will have to divide total market value of outstanding shares  by the total number of outstanding shares to get market value per share:

MV per Share = \frac{10m}{35m} = 28.5

<em>Hence, statement A and C both are correct. </em>

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Answer:

The correct answer is letter "B": a shift to the right of the supply curve for A.

Explanation:

According to the supply law, when the quantity supplied of a good increase, so will the price for that good. This will also cause that the supply curve shifts to the right. Then, technological improvements are likely to boost production which implies manufacturing more products, thus, increasing supply.

So, <em>the introduction of technologies in the production of good A will shift the supply curve of A rightwards.</em>

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