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Scorpion4ik [409]
3 years ago
14

Corn chips and potato chips are substitutes. Good weather that sharply increases the corn harvest would a. increase consumer sur

plus in the market for corn chips and decrease producer surplus in the market for potato chips. b. decrease consumer surplus in the market for corn chips and decrease producer surplus in the market for potato chips. c. decrease consumer surplus in the market for corn chips and increase producer surplus in the market for potato chips. d. increase consumer surplus in the market for corn chips and increase producer surplus in the market for potato chips.
Business
1 answer:
yaroslaw [1]3 years ago
6 0

Answer: Option(a) is correct.

Explanation:

Corn chips and potato chips, both are substitute goods and thus, affect each others demand by a small changes in various factors.

In this question, a good weather increases the harvesting of corn which increases the supply of corn chips.

This shifts the supply curve rightwards as a result price falls and quantity increases. Hence, this lower price, increases the consumer surplus in the market of corn chips.

This change in the supply of corn chips will affect the demand for potato chips in the potato chips market. So, the demand curve for potato chips shifts leftwards. This shift in the demand curve, reduces the price level and quantity level. Hence, this lowers the producer surplus in the market for potato chips.

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5. A business in its first period of trading charges $4,000 of sales tax on its sales and suffers $3,500 of sales tax on its pur
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The unrecoverable sales tax on business entertaining ($250) has been deducted from $3,500

solution

                                   SALES TAX CONTROL ACCOUNT

Payable s                                             $ 3250        Receivables       $4000

Balance c/d (owned to tax authority)   $ 750

                                                           -------------                                ---------------

                                                             $ 4000                                    $4000

                                                           --------------                               ----------------

                                                                              By balance b/d       $ 750

8 0
3 years ago
I have an iPhone 11 pro, and I blocked a user about a week ago but they are still able to call me. I double and triple checked t
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Answer:

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Explanation:They will know what to do

7 0
3 years ago
Read 2 more answers
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Answer:

10.12 %

Explanation:

Weighted Average Cost of Capital (WACC) is the cost of permanent sources of capital pooled together. It shows the risk of the business and is used to evaluate projects.

WACC = Cost of equity x Weight of Equity + Cost of Debt x Weight of Debt + Cost of Preference Stock x Weight of Preference Stock

<u>Remember to use the After tax cost of debt :</u>

After tax cost of debt = Interest x (1 - tax rate)

                                    = 10​% x ( 1 - 0.40)

                                    = 6.00 %

<u>Cost of equity :</u>

Cost of equity = Return from Risk free security + Beta x Risk Premium

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<u>Cost of Preference Stock :</u>

Cost of Preference Stock  = Dividend / Market return x 100

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thus,

Ford's weighted average cost of capital is 10.12 %

6 0
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