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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

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Which of the following is an advantage to belonging to a labor union?
alisha [4.7K]

Labor union protect the workers right and interest.

Firstly, let understand that labor union is basically an association of workers which can either be for a trade or profession, with the main objective of protecting members rights and interests

  • The major function of labor union is to help improve the lives of members by negotiating and determining the remuneration rate that should be provided to them such as wages, salaries, hourly rate, minimum wages etc.

Some advantage of Labor union for workers are:

  1. Its helps to protect the interest of workers.
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  3. Its help to ensure workplace safety.
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Learn more about Labor union here

<em>brainly.com/question/453055</em>

7 0
2 years ago
ABC Company sells 300 machines for $5000 each in the current year. Each machine carries a one-year warranty. Experience from the
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Answer:

the journal entry to record warranty expense is:

Dr Warranty expense 30,000

    Cr Warranty liability 30,000

the journal entry to record actual expenses related to product warranties:

Dr Warranty liability 10,000

    Cr Cash (or inventory, or wages payable) 10,000

Depending on what type of costs are incurred by the company, the account credited will vary, e.g. if units are replaced, then inventory must be credited, or if units are repaired and only labor is used, then wages payable or cash should be credited. Since the question doesn't give us a lot of details, I credited cash.

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3 years ago
What were the main factors in both the North and South for the abandonment of Reconstruction?
OverLord2011 [107]
Social effects were bringing families back together, the Emancipation act, and churches and schools being available to former slaves. What were the main factors, in both the North and South, for the abandonment of Reconstruction?- Land, jobs, and establishing the Bureau were the main factors for both.
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3 years ago
(A bond forward) A certain 10-year bond is currently selling for $920 A friend of yours owns a forward contract on this bond tha
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Answer: -$100

Explanation:

Value of forward contract = Selling price - Forward price on bond

Forward price = Present value of cashflows + Present value of bond

Periodic rate = 7%/ 2 = 3.5% per semi annum

= 8% / 2 = 4%

3.5% will be used to discount the payment 6 months from now as that is the 6 month rate. The rest will be 4%.

= (80 / (1 + 3.5%) ) + ( 80 / ( 1 + 4%)²) + (940 / ( 1 +4%)²)

= $1,020.342

= $1,020

Value of forward contract = 920 - 1,020

= -$100

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