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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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Diaz Company owns a machine that cost $250,000 and has accumulated depreciation of $182,000. Prepare the entry to record the dis
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Answer:

Explanation:

The journal entries are shown below:

1. Accumulated Depreciation A/c Dr $182,000

 Loss on disposal of machine A/c Dr $68,000

         To Machine A/c                                $250,000

(Being the machine disposed off)

2. Accumulated Depreciation A/c Dr $182,000

  Loss on disposal of machine A/c Dr $33,000

  Cash A/c Dr $35,000

         To Machine A/c                                $250,000

(Being machine sold for $35,000)

3. Accumulated Depreciation A/c Dr $182,000

  Cash A/c Dr $68,000

         To Machine A/c                                $250,000

(Being machine sold for $68,000)

4. Accumulated Depreciation A/c Dr $182,000

  Cash A/c Dr $80,000

         To Machine A/c                                $250,000

         To profit on disposal of machine A/c Dr $12,000

(Being machine sold for $80,000)

5 0
3 years ago
A bank provides its customers mobile applications that significantly simplify traditional banking activities. For example, a cus
zaharov [31]

Answer: Differentiation strategy

Explanation:

Differentiation strategy is a strategy that differentiate a product or service, from other identical products that are offered by competitors in the market. Differentiation is development of a good or service, which is unique for customers, in terms of features, product design, quality, brand image, or customer service.

Differentiation strategy is one of the three Porter’s Generic Strategy. In this strategy, firms pick one or more dimensions that are considered to be vital by the consumers thereby creating a unique image in the market.

The use of mobile banking application will ease the traditional method of banking and makes the bank standout.

4 0
3 years ago
In front of you is a slow-moving truck you want to pass. You see no vehicles coming from the other direction. What four things s
babunello [35]
<span>Lines (No overtaking), any junctions, Speed cameras, and cars coming the other way?</span>
3 0
3 years ago
Nolan Company's cash account shows a $21,268 debit balance and its bank statement shows $19,711 on deposit at the close of busin
dusya [7]

Answer:

Balance at Bank as per the Cash Book   $21,250

<u>Add Unpresented Checks :</u>

Outstanding checks                                     $2,231

<u>Less Lodgements not yet credited :</u>

Cash Receipts - Night Depository             ($3,801)

Balance as per Bank Satement               $20,400

Explanation:

First bring the Cash book up to date :

Cash Book Bank Balanace

Debits  :

Bank Balance as of June 30    $21,268

Error - Overstated Check                  $9

Totals                                            21,277

Interest earned $31

Credits :

Bank service charges                     $27

Balance (Up to Date)                 $21,250

Totals                                          $21,277

Then, Prepare the Bank Reconciliation Statement :

Balance at Bank as per the Cash Book   $21,250

Add Unpresented Checks :

Outstanding checks                                     $2,231

Less Lodgements not yet credited :

Cash Receipts - Night Depository             ($3,801)

Balance as per Bank Satement               $20,400

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3 years ago
Mercantile corporation has sales of $2,000,000, variable costs of $1,100,000, and fixed costs of $750,000. mercantile's margin o
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The break even point would be 1850000, and as Mercantile made 2000000, the margin of safety would be 150000.
4 0
3 years ago
Read 2 more answers
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