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vekshin1
2 years ago
13

The intention of a price floor is to help producers by setting a higher than equilibrium price. What is one unintended consequen

ce of this policy
Business
1 answer:
zloy xaker [14]2 years ago
5 0

Answer:

One unitended consequence of this policy is that if the price is above the equilibrium price then this will affect the market by producing black market, low importance to the product that has risen up in price and more importantly it will produce the demand of the product to fall down.

Explanation:

To begin with, the price floor is a method used in the microeconomics theory in order to give help to the producers from the government who are the ones who choose how to control and manipulate the price of the good. But this method tends to be very aggressive and not good at all if the price floor is set above the equilibrium price set by the market itself and that is because the producers will be offering a product that is much expensive in price and not worth in value at all so the demand for the product will fall and it will create a black market where the consumers who want to pay less will go there for even a product with less quality.

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The range rule of thumb roughly estimates the standard deviation of a data set as​ _______.
goblinko [34]
Range is the measure of variation that is very sensitive to extreme values. It is the difference between high and low values, while standard deviation is the standard measure of variation.The range rule of thumb roughly estimates the standard deviation of a data set as s=range/4 , where s stands for standard deviation and
<span>range = Maximum - Minimum</span>
5 0
3 years ago
PandemicsPlus just paid a dividend of $1.00 per share and they consistently grown dividends at 4% annually. Investors require a
oee [108]

Answer:

$13

Explanation:

The current value of the stock can be determined using the constant growth dividend model

according to the constant dividend growth model

price = d1 / (r - g)

d1 = next dividend to be paid

r = cost of equity

g = growth rate

(1 x 1.04) / (0.12 - 0.04) = 13

8 0
3 years ago
Suppose that the Town of Mapledale is considering hiring an additional firefighter. The expected benefit is estimated to be wort
Radda [10]

Answer:

(B) Hire the firefighter if the cost of the new firefighter is less than $75,000.

Explanation:

The city should hire the Firefighter only if the cost of new firefighter is less than $75,000.

Since $5 x 15000 residents = $75, 000.

Therefore it is still beneficial to hire a new firefighter if the cost is less than $75, 000

5 0
3 years ago
On January 1, 20Y3, The Simmons Group, Inc., purchased the assets of NWS Insurance Co. for $37,152,500, a price reflecting an $5
Triss [41]

Answer:

The Simmons Group, Inc.

a. December 31, 20Y9, the book value of Goodwill before impairment = $5,572,875

b. Effects on the accounts of the December 31, 20Y9 adjustment for the goodwill impairment:

1. Impairment loss of $3,901,012 will be accounted for in the Income Statement for the year, thus reducing the reported profits by $3,901,012.

2. Goodwill be reduced to $1,671,863 in the balance sheet by deducting the impairment loss of $3,901,012 from the book value before the impairment.

Explanation:

a) Data and Calculations:

Jan. 1, 20Y3, Purchase price of NWS Insurance Co. = $37,152,500

Goodwill on acquisition = $5,572,875

December 31, 20Y9, the book value of Goodwill before impairment = $5,572,875

Impaired value - $1,671,863

Impairment loss = $3,901,012 ($5,572,875 - $1,671,863)

b) The Goodwill impairment shows that the carrying amount, $1,671,863, is less than the fair value of $5,572,875.  Goodwill is an intangible asset which Simmons Group acquired from NWS Insurance on January 1, 20Y3.  It is annually tested for impairment by comparing the fair value with the carrying value.  

6 0
2 years ago
Suppose that a flower nursery benefits from having a butterfly farm located only a few miles away, because the presence of the i
garri49 [273]

Answer: Contracts

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4 0
3 years ago
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