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Dmitrij [34]
3 years ago
11

Suppose that the government imposes a commodity tax on alcohol. Assuming that both alcohol demand and supply are relatively elas

tic, what happens to alcohol consumption and to the alcohol market price?
a. Alcohol consumption increases, whereas the alcohol market price increases if the tax is placed on the sellers or decreases if the tax is placed on the buyers.
b. Alcohol consumption increases, whereas the alcohol market price increases if the tax is placed on the buyers or decreases if the tax is placed on the sellers.
c. Alcohol consumption decreases, whereas the alcohol market price increases if the tax is placed on the sellers or decreases if the tax is placed on the buyers.
d. Alcohol consumption decreases, whereas the alcohol market price increases if the tax is placed on the buyers or decreases if the tax is placed on the sellers.
Business
1 answer:
belka [17]3 years ago
6 0

Answer:

c. Alcohol consumption decreases, whereas the alcohol market price increases if the tax is placed on the sellers or decreases if the tax is placed on the buyers.

Explanation:

Elastic demand is the situation that when the price of a good goes up the quantity demanded reduces. Since alcohol demand and supply are both elastic, If commodity tax is imposed on sellers then they decrease the supply and increase the price of alcohol. The increased price of alcohol will make buyers buy less of alcohol thereby reducing the consumption of alcohol.

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Answer:

C. freely operating economy in which all markets are perfectly competitive.

Explanation:

When we have a lot of producers and many consumers in an economy, the best way to achieve an efficient allocation of resources is to have a freely operating economy in which all markets are perfectly competitive.

  • In such a free economy, demand for goods and services are not controlled.
  • The consumers behavior towards purchasing will determine if producers should allocate more resources to a production process or not.
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3 years ago
In 1915, peter oberweis started selling his excess milk to his neighbors. by 1927, he decided to start a more formal business so
Alexandra [31]
During the sales era of marketing. 

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2 years ago
Wilturner Company incurs $76,000 of labor related directly to the product in the Assembly Department, $25,000 of labor not direc
coldgirl [10]

Answer:

correct option is b) $76,000 and $37,000

Explanation:

given data

Labor related directly to the product = $76,000

labor not directly related to the product = $25,000

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solution

As here Direct Labor is express as

Direct Labor  = Labor related directly to the product   ...............1

so

Direct Labor = $76,000

and

Factory Overhead will be as

Factory Overhead = Labor not directly related to the product + labor for services  ,................................2

put here value and we get

Factory Overhead  $25000 + $12000

Factory Overhead = $37,000

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3 years ago
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Answer: c. Foster Inc.'s assets will decrease by a net amount of $30,000.

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Since the company borrowed $30,000, this will lead to an increase in the liability of the company by $30,000. Also, it will lead to a reduction in the net assets of the company by a net amount of $30,000

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Answer:

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