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marta [7]
2 years ago
5

Donna runs an inn and charges $300 a night for a room, which equals her cost. Sam, Harry, and Bill are three potential customers

willing to pay $500, $325, and $250, respectively. When the government levies a tax on innkeepers of $50 per night of occupancy, Donna raises her price to $350. The deadweight loss of the tax is:________
a. $25
b. $50
c. $100
d. $150
Business
1 answer:
alina1380 [7]2 years ago
6 0

Answer:

a. $25

Explanation:

According to the given situation, the computation of deadweight loss of the tax is shown below:-

Deadweight Loss = 1 ÷ 2 × 1 × ($350 - $300) = 1 ÷ 2 × ($50)

Or, Deadweight Loss = 1 ÷ 2 × ($50)

Or,  Deadweight Loss = $25

Therefore the correct option is a. $25

We simply considered the above values so that the deadweight loss of the ta could come

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) suppose that currency in circulation is $600 billion, the amount of checkable deposits is $900 billion, and excess reserves ar
Inessa05 [86]
Money supply = Currency in circulation + Checkable deposits.=600 + 900 = 1500 Billion

Current deposit ratio = Currency in Circulation/ Checkable deposits. = 600/900 = .667

Excessive reserve ratio = Excess Reserves/Checkable deposits.= 15/900 = .0167

Money multiplier = (1 + C)/(rr + ER + C)= (1 + .667)/ (.0278 + .0167 + .667) = 2.343
4 0
3 years ago
Read 2 more answers
Royal Decking has five products in its inventory. Information about the December 31, 2021 inventory is below:
wariber [46]

Answer:

Royal Decking

A) Per unit value for each of Royal Decking's products, applying LCNRV:

Product   Cost   Sales Price   NRV                          LCNRV

A              $40      $60           $44 ($60 - 12 - 4)      $40

B                80       100           $72 ($100 - 20 - 8)    $72

C                40        80           $60 ($80 - 16 - 4)       $40

D               100      130           $84 ($130 - 26 - 10)   $84

E                 20       30           $22 ($30 - 6 - 2)       $20

B. Total Inventory on the balance sheet is:

$256,000

Explanation:

a) Data and Calculations:

Ending Inventory at December 31, 2021:

Product   Cost   Sales Price   NRV                          LCNRV  Inventory value

A              $40      $60           $44 ($60 - 12 - 4)      $40          $40,000

B                80       100           $72 ($100 - 20 - 8)    $72          $72,000  

C                40        80           $60 ($80 - 16 - 4)       $40          $40,000

D               100      130           $84 ($130 - 26 - 10)   $84           $84,000

E                 20       30           $22 ($30 - 6 - 2)       $20          $20,000

Total inventory value                                           $256       $256,000

= ($256 * 1,000)

Selling costs = 20% of selling price

Shipping costs = 10% of cost

5 0
2 years ago
The statement of cash flows presents:
Elena-2011 [213]

Answer:

Option C is correct.

Explanation:

The statement of cash flow presents us the information about the cash, where the cash was invested including how much cash we have earned by investing in projects, how much cash the operations has created and how much cash has been created from the financing activities. This statement tells us about the origin of the cash and where the company is spending it.

4 0
3 years ago
The following bond was quoted in The Wall Street Journal:
lisov135 [29]

If Five bonds were purchased yesterday, and 5 bonds were purchased today. How much more that the 5 bonds cost today is: $75.

<h3>Cost of bonds today</h3>

Using this formula

Bond Yield =Total annual interest of bond / Total current cost of bond at closing

First step is to calculate the Closing bonds

Closing bonds=(96.875 x 10)× 5 bonds

Closing bonds= $968.75 × 5 bonds

Closing bonds= $4,843.75

Second step is to calculate the Next day cost of bonds

Next day cost of bonds=[(96.875 + 1.50) x 10]× 5 bonds

Next day cost of bonds = $983.75 × 5 bonds

Next day cost of bonds= $4,918.75

Third step is to calculate the Cost of bonds today

Cost of bonds today=$4,918.75 - $4,843.75

Cost of bonds today = $75

Therefore If Five bonds were purchased yesterday, and 5 bonds were purchased today. How much more that the 5 bonds cost today is: $75.

Learn more about cost of bonds today here:brainly.com/question/25596583

#SPJ1

6 0
1 year ago
An absolute definition of poverty is:________a) a relatively fixed level of income above which a person cannot function in a pro
mafiozo [28]

Answer:

d) Neither A nor B

Explanation:

Poverty refers to a financial state wherein an individual is unable to meet the most basic needs for survival such as food clothing and shelter.

Absolute poverty refers to a state wherein the income of a household is below a certain threshold level which makes it hard to meet the basic necessities of life such as food, shelter, water and sanitation.

The concept of relative poverty makes a comparison i.e relatively to others. When one is relatively poorer than others. The person in such a scenario may be able to meet his ends but relative to other households income, shall be termed as poor.

8 0
3 years ago
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