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2 years ago

What is the purpose of a price ceiling?please I need it right now :'(

Business

2 answers:

Alborosie2 years ago

8 0

Answer:

To protect the poor.

Explanation:

By keeping prices to a certain maximum, price ceilings guarantee that certain basics are affordable to everyone.

Tems11 [23]2 years ago

7 0

Answer:

B. To enable rationing

Explanation:

The purpose of price ceiling would be to enable rationing.

A price ceiling represents an imposed price control over a product. It is the maximum amount a manufacturer or a supplier is allowed to charge for a product within an economy.

Price ceilings are imposed so as to ensure that prices of products remain within the range of an average consumer within a population and prevent excessive upward movement of prices.

Price ceilings help in rationing. It ensures that an average consumer is not overcharged for products in as much as the manufacturer/suppliers get reasonable profit for their production.

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Which of the following statements is true of the behavior of total variable costs, within the relevant range? A. They will inc

grandymaker [24]

Answer:

They will decrease as production decreases

Explanation:

Total Variable cost is sum of all the cost incurred in production of total units of goods produced. It is directly proportional to the number of units of goods produced. It helps to analyze cost structure of goods and then decide on pricing strategy of the goods. Some of the examples of variable cost can be packaging cost, raw material’s cost.

Mathematically it can be defined as

Total variable cost = Total units of goods produced * variable cost for one unit of good produced

Hence from the given option They will decrease as production decreases as the number of units of goods produced will decrease and hence lesser raw material and packaging will be required to produce the goods.

7 0

3 years ago

Problem 7-28 Nonconstant Growth (LO2) Planned Obsolescence has a product that will be in vogue for 3 years, at which point the f

LuckyWell [14K]

Answer:

Po = D1 + D2 + D3

(1 + Ke) (1 + Ke)2 (1 + Ke)3

Po = $12 + $12.50 + $28

(1 + 0.1) (1 + 0.1)2 (1 + 0.1)3

Po = $12 + $12.50 + $28

1.1 (1.1)2 (1.1)3

Po = $10.91 + $10.33 + $21.04

Po = $42.28

Explanation:

The current stock price is a function of future dividends capitalised at the cost of capital of the company of 10% for a period of 3 years.

6 0

2 years ago

According to anthony downs model, a rational party will adopt the policy position that is

Stells [14]

Closest to the view of the majority of voters.

The Anthony Downs model attempts to apply economic theories to political decision making.

8 0

3 years ago

Wang Company began operations on January 1, 2018, by issuing common stock for $70,000 cash. During 2018, Wang received $88,000 c

posledela

Answer:

Wang Company

Statement of financial position

Equity and liabilities

Issued share capital $70,000

Retained earnings $45,000

115,000

Assets

Non-Current assets

Fixed assets $22,000

Current assets

Cash in hand $93,000

$115,000

Wang company

Income statement

Net sales $88,000

Cost of sales $38,000

Gross margin $50,000

Less:admin expenses $5,000

Net Profit $45,0000

3 0

3 years ago

Gross billings for merchandise sold by lang company to its customers last year amounted to $11,720,000; sales returns and allowa

Alborosie

Calculation of Net sales last year for Lang Company:

It is given that Gross billings for merchandise sold by Lang Company to its customers last year amounted to $11,720,000; sales returns and allowances were $370,000, sales discounts were $175,000.

Net sales can be calculated using the following formula;

Net Sales = Sales –Sales Returns –Allowances

= $11,720,000-$370,000-$175,000

= $11,175,000

Hence the Net sales last year for Lang Company is $11,175,000

Hence the correct asnwer is c. $11,175,000.

5 0

3 years ago

What is the purpose of a price ceiling?please I need it right now :'(​

What is the purpose of a price ceiling?please I need it right now :'(