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ElenaW [278]
4 years ago
9

Suppose that Bob places a value of $10 on a movie ticket and that Lisa places a value of $7 on a movie ticket. In addition, supp

ose the price of a movie ticket is $5. 15. Refer to Scenario 12-2. Suppose the government levies a tax of $3 on a movie ticket and that, as a result, the price of a movie ticket increases to $8. What is total consumer surplus after the tax is imposed?
Business
1 answer:
Alex_Xolod [135]4 years ago
7 0

Answer:

$1

Explanation:

We can use the simple consumer surplus formula:

Consumer surplus = Maximum Price Willing to Pay - Actual Price

For Bob

Consumer Surplus = $10 - $8

                              = $2

For Lisa

Consumer Surplus = $7-8

                               = $-1

So, the total consumer surplus is $1

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The common stock of Sweet Treats is selling for $50.15 per share. The company is expected to have an annual dividend increase of
mote1985 [20]

Answer:

11.2%

Explanation:

Here, we want to calculate the total return on the stock.

From the question, Price = $50.15

Mathematically;

P = D1/Ke-g

D1 = $3.80

g = 3.60%

So let’s calculate Ke-g

50.15 = 3.8/ke-g

Ke-g = 3.8/50.15

Ke-g = 7.6%

but g = 3.6%

Total return Ke = 3.6% + g = 3.6% + 7.6% = 11.2%

4 0
3 years ago
States that have the political, economic, and military resources to shape the world beyond their borders are often called:______
Feliz [49]

Answer:

Great Powers

Explanation:

3 0
2 years ago
Jarvey Corporation is studying a project that would have a ten-year life and would require a $450,000 investment in equipment wh
Tems11 [23]

Answer:

Payback period = 3 years

Explanation:

<em>The payback period is the average length of time it takes the cash inflow from a project to recoup the cash outflow.</em>

<em>Where a project is expected to generate a series of equal annual net cash inflow, the payback period can be calculated as:  </em>

<em>Payback period =The initial invest /Net cash inflow per year </em>

The cash inflow = Net operating income + Depreciation

                          = 105, 000 + 45,000 = 150,000

Note we have to add back depreciation because it is not a cash-based expenses. And payback period makes use of only cash-based revenue and expenses.

Payback period = 450,000/150,000

                          = 3 years

Payback period = 3 years

5 0
4 years ago
An organization in which there are a lot of formal rules, people are treated in animpersonal manner, jobs are carefully divided
andrezito [222]

Answer:

Theory X organization

Explanation:

McGregor defined it as this: an organization whose approach tend to have several strata of managers and supervisors to oversee and direct workers. A place where Authority is rarely delegated, and control remains firmly centralized. Managers are authoritarian and actively intervene to get things done.

7 0
3 years ago
The four components of planned aggregate expenditure are: A. spending on domestic goods, domestic services, foreign goods, and f
ASHA 777 [7]

Answer:

D.

Explanation:

Aggregate Planned Expenditure (AE) can be defined as the sum value of all the finished products and services in an economy. This value is calculated by adding all the expenditures that are considered in an economy. These components are household consumption (C), planned investments (I), Government expenditures or purchases (G), and net exports (NX) [net exports is the difference between the total exports and total imports].

<u>The sum value or the aggregate planned expenditure is calculated by adding all these components</u>.  

So, the correct answer is option D.

6 0
4 years ago
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