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3 years ago

If demand increased by 100 units at each price level, and the government set a price ceiling of $40, then there will be

Business

1 answer:

mel-nik [20]3 years ago

4 0

Answer:

no surplus or shortage

Explanation:

Equilibrium price is the price at which quantity demand equal quantity supplied. Above equilibrium price there is a surplus - quantity supplied exceeds quantity demanded.

Below equilibrium price there is a shortage - quantity demanded exceeds quantity supplied

If demamd increases by 100, new equilibrium is 40

Thus, ceiling price equal equilibrium

Price ceiling is when the government or an agency of the government sets the maximum price for a product. It is binding when it is set below equilibrium price.

Effects of a binding price ceiling

It leads to shortages

it leads to the development of black markets

it prevents producers from raising price beyond a certain price

It lowers the price consumers pay for a product. This increases consumer surplus

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Unlike households, governments are often able to sustain large debts. For example, in 2013, the U.S. government's total debt rea

nirvana33 [79]

Answer:

the dollar cost of the annual interest on the government's total debt assuming the interest rate and debt is $356 billion

Explanation:

Dollar cost of annual interest on total debt = Total debt for the year x Average interest rate

= $17.3 trillion x 2%

= $17,300 billion x 2%

= $346 billion

This value is closest to option (2).

6 0

4 years ago

You are comparing two mutually exclusive projects, Project X and Project Z. The crossover point is 11.4 percent. You have determ

Elis [28]

Since the crossover point is 11.4 percent and have decided to accept project X because the required return is 12.7 percent, it that implies that we sould always accept Project X if the required return exceeds the crossover rate.

Crossover rate refers to the cost of capital where the net present values of 2 projects are equal.

After the cross over rate, the project X will remain better compared to project Y.

Hence, since the crossover point is 11.4 percent and have decided to accept project X because the required return is 12.7 percent, it implies that we should always accept Project X if the required return exceeds the crossover rate.

Therefore, the Option C is correct.

Missing options "A. accept Project Z if the required return is less than 12.7 percent. B. be indifferent to the projects at any discount rate above 12.7 percent. C. always accept Project X if the required return exceeds the crossover rate. D. always accept Project X E. accept Project Z only when the required return is equal to the crossover rate."

Read more about crossover rate

brainly.com/question/10538159

7 0

3 years ago

Inventory reduction via JIT is an effective tool for identifying

asambeis [7]

Answer:

B. Causes of variability

Explanation:

Inventory reduction via Just in time is a technique that aligns raw material orders from suppliers directly to production schedules. It helps in reducing inventory costs. It increases efficiency and reduces waste as goods are only received when the organization using JIT needs them for operations. In JIT, production period is short, warehouse need is minimize thus reducing costs. Also, it becomes of useful tool in identifying causes of variability. It reduces variability caused by both internal and external factors. Variability are normal deviation from the most efficient and optimum process.

4 0

3 years ago

Pacifica Manufacturing retired a computerized metal stamping machine on December 31, 2011. Pacifica sold the machine to another

eduard

Answer:

Depreciation expense $95,000

To Accumulated depreciation $95,000

(Being the depreciation expense is recorded)

Explanation:

The journal entry is shown below:

Depreciation expense $95,000

To Accumulated depreciation $95,000

(Being the depreciation expense is recorded)

The computation is shown below:

= (Cost installed - Residual value) ÷ Useful life

= ($920,000 - $160,000) ÷ 8

= $95,000

For recording this journal entry we debited the depreciation expense as it is increased the expenses while at the same time it decreased the value of the fixed assets so the accumulated depreciation is credited

6 0

3 years ago

The president believes that a $6,200 increase in the monthly advertising budget, combined with an intensified effort by the sale

nirvana33 [79]

Solution and Explanation:

calculating the increase in the net operating income is as follows:

S.no Particulars and explanation Amount

1. Sales ( $268000 + 84000 ) 352000

2. Contribution ( 1 multiply with 40 percent) 140000

3. Fied expense ( $119200 plus $6200 ) 125400

4. Net operating income ( 2 step minus 3 step) $14600

therefore, net operating income increased by $ 14600 plus $12000

Note: the sales were not given, so i have taken or assumed. Please change the figure if there is different figure of sales in the question given.

3 0

3 years ago