1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
lions [1.4K]
2 years ago
12

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]2 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

You might be interested in
Use the following information to answer the questions:
Nostrana [21]

Answer:

A.) Since the United States has an aging population and thus an expected decline in working population in the future, therefore, increasing the output per worker seems more relevant in the United states than increasing the proportion of working population. Because Mexico on the other hand boasts a youthful population, Mexico can increase its standard of living by either increasing its output per worker or by increasing the proportion of the population that works.

B.) GDP INCREASES.....

STANDARD OF LIVING ALSO INCREASES....

INCREASE IN NUMBER OF EMPLOYED WORKERS HAS GREATER WEIGHT THAN THE DECREASE IN LABOR PRODUCTIVITY

Explanation:

A.) Since the United States has an aging population and thus an expected decline in working population in the future, therefore, increasing the output per worker seems more relevant in the United states than increasing the proportion of working population. Because Mexico on the other hand boasts a youthful population, Mexico can increase its standard of living by either increasing its output per worker or by increasing the proportion of the population that works.

2.). - - - - - - - - - - - - - - - - - - - - - YEAR - - - - - -

------ - - - - - - - - - - - - - - - 2014 - - - - - - - 2015

Population - - - - - - - - - - 1000 - - - - - - - 1000

Employed workers - - - - 400 - - - - - - - - 440

Labor productivity - - - - 2000 - - - - - - - 1900

GDP = Labor productivity × employed pop.

2014 GDP = 2000 × 400 = 800,000

2015 GDP = 1900 × 440 = 836,000

GDP INCREASES.....

STANDARD OF LIVING ALSO INCREASES....

INCREASE IN NUMBER OF EMPLOYED WORKERS HAS GREATER WEIGHT THAN THE DECREASE IN LABOR PRODUCTIVITY

7 0
3 years ago
A kind of annuity that consists of cash flows of equal amounts occurring at regular intervals and that continues indefinitely is
lozanna [386]

Payment is a type of annuity that comprises of equal financial flows that happen at regular periods and last forever.

Describe an annuity.

The goal of nationwide annuities is to increase your retirement income. They are long-term agreements with an insurance provider where you put money. You receive income in the form of recurring payments as compensation for your investment.

many annuity types

There are several different annuity product categories to pick from. Your financial professional can design a strategy to fit your unique objectives, whether you're searching for income possibilities, tools for legacy planning, or spousal protection.

to know more about annuity

brainly.com/question/25792915

#SPJ4

4 0
1 year ago
What makes australian economy so prosperous?
Setler79 [48]
<span>Capitalist economic policies caused Kenya's economy to prosper.</span>
3 0
3 years ago
You've noticed that a significant number of your website's customers--36.2%--abandon their shopping carts at the first stage of
Sauron [17]
Allow people to check out as guests
7 0
2 years ago
The following information pertains to Pernell Company's pension plan. Beginning PBO: $500,000; current service cost $50,000; dis
monitta

Answer:

= $560,000

Explanation:

Given that:

  • -Beginning PBO: 500,000
  • -Current Service Cost: 50,000
  • -Discount Rate: 6%  => interest cost = 500,000*6% = 30,000
  • -Contributions by Pernell: 40,000
  • -Benefits paid to employees 25,000
  • -Loss on PBO: 5,000

As we know that service cost; gains and losses; payments to retired employees; prior service cost; interest cost; payments to employees are factors that change the balance of the PBO

So the ending balance of the PBO will be:

Beginning PBO + Current Service Cost + Interest cost Loss on PBO -Benefits paid to employees

$500,000 + $50,000+ $30,000+$5,000-$25,000

= $560,000

4 0
2 years ago
Other questions:
  • An entrepreneur has purchased a gym franchise and been very disappointed in the results. The franchise has not earned what the e
    9·1 answer
  • Which language is the most common for worldwide trade and business?
    15·2 answers
  • "Willow's team has split up the contributions for its group writing project equally, with individual team members committing var
    8·1 answer
  • On January 2, 2010, Porter Corporation issued 30,000 shares of 6% cumulative preferred stock at $100 par value. On December 31,
    7·1 answer
  • 1. Determine the utilization and the efficiency for each of these situations: a. A loan processing operation that processes an a
    7·1 answer
  • Which of the following practices should be discouraged during the problem-solving process?
    6·2 answers
  • Today, if John’s computer stops operating correctly, he probably calls a computer repair technician to fix it. The computer repa
    12·2 answers
  • Until recently you worked as an accountant earning $55,000 annually. Then you inherited a piece of commercial real estate bringi
    10·1 answer
  • Which of the following is the primary cause of salary compression? A. taxes B. inflation C. interest rates D. collective bargain
    14·1 answer
  • An investor deposits $2,000 per year (beginning today) for 10 years in a 4% interest bearing account. The last cash flow is rece
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!