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2 years ago

1. What is the impact of government created price ceilings on the market place?

Business

1 answer:

makkiz [27]2 years ago

4 0

Answer:

They create shortages in the market

Explanation:

A price ceiling refers to the maximum amount that sellers are legally allowed to charge for products are services. The government uses price control to regulate prices when it feels they are rising at a fast rate. The price ceiling is set at a lower level than the equilibrium price as the government tries to tame rising prices.

The price ceiling brings about a shortage in the market. Suppliers will shy away from the market as the reduced price may not meet their cost. Price ceiling reduces supplier profits margins, which discourages supply.

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Mack opened a cd 10 years ago at an interest rate of 7.8%, compounded monthly. According to the rule of 72, when did he have hal

Yakvenalex [24]

72 rule says
72/rate=Time
72/7.8= 9.23 years

8 0

3 years ago

Read 2 more answers

Which one of the following is not a primary component of an internal control system?

Bond [772]

The following is not a primary component of an internal control system Control environment .

The primary cause of inner controls is to assist safeguard an corporation and further its objectives. internal controls characteristic to limit risks and shield property, make certain accuracy of facts, sell operational efficiency, and inspire adherence to policies, rules, regulations, and legal guidelines.

Internal controls are techniques designed to help guard an enterprise and limit danger to its objectives. inner controls decrease risks and guard belongings, ensure accuracy of statistics, sell operational performance, and encourage adherence to policies, policies, policies, and laws.

Determining whether a specific internal manage machine is effective is a judgement because of an assessment of whether the five additives - manage surroundings, risk assessment, manage sports, information and communique, and tracking - are present and functioning.

Learn more about Internal controls here

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5 0

1 year ago

Ed is taking off from work for four hours this afternoon and going to a baseball game. The ticket to the game costs $25 and it c

statuscvo [17]

Answer: $100

Explanation:

Opportunity cost is the benefit that we forgo when another option is chosen thereby leaving out something else. Based on the information given, Ed's opportunity cost of going to the ball will be calculated as the addition of the income that's lost when he takes some time off from his work and the expenses that he incurs on the base ball game. This will be:

= ( 4 × $15) + $25 + $15

= $60 + $40

= $100

The opportunity cost is $100.

8 0

2 years ago

The supply of headphones is linear and upward sloping, and the demand for headphones is linear and downward sloping. Suppose the

Norma-Jean [14]

Answer:

8,000

Explanation:

Initially, the market is at equilibrium E1: P = P1; Q = Q1

Assume that the tax is imposed, the market will move to when Q = Q2; the price buyers pay is greater than P1, the price producers receive is less than P1.

We have: Price buyers pay - Price producers receive = Tax

As the tax decreases the equilibrium quantity by 700 headphoes

=> Q1 - Q2 = 700

=> Q2 = Q1 - 700

=> Q1 + Q2 = Q1 + Q1 - 700 = 2Q1 - 700

Before tax:

+) the producer surplus (PS) is equal to the area formed by supply curve S, price line P1 and the vertical axis

=> PS1 = Area of BE1P1

+) the consumer surplus (CS) is equal to the area formed by demand D, price line P1 and the vertical axis

=> CS1 = Area of AE1P1

=> The wellness before tax = CS1 + PS1 = Area of AE1B

After tax:

+) the producer surplus (PS) is equal to the area formed by supply curve S, price line (Price producers receives) and the vertical axis

=> PS2 = Area of BDE

+) the consumer surplus (CS) is equal to the area formed by demand D, price line (price buyers pay) and the vertical axis

=> CS2 = Area of ACF

+) The Tax revenue = Tax * Q2 = (Price buyers pay - Price producers receive) * Q2 = CD * DE = Area of CFDE

=> The wellness after tax = PS2 + CS2 + Tax Revenue = BDE + ACF + CDEF

=> Deadweight loss = Wellness before Tax - Wellness after tax = Area of EFE1 = 2,800

The tax decreases consumer surplus by $4,000.00, and it decreases producer surplus by $6,800.00

So that:

+) CS1 - CS2 = 4,000

=> Area of AE1P1 - Area of ACF = Area of CFE1P1 = 4,000

+) PS1 - PS2 = 6,800

=> Area of BE1P1 - Area of BDE = 6,800

=> Area of EDP1E1 = 6,800

=> Area of CFE1P1 + Area of EDP1E1 = 4,000 + 6,800

=> Area of CFE1ED = 10,800

Area of CDEF + Area of EFE1 = Area of CFE1ED = 10,800

=> Area of CDEF + 2,800 = 10,800

=> Area of CDEF = 8,000

=> Tax revenue = 8,000

6 0

2 years ago

Knowing that $45,500 is a very good price for an LS-400, Mike is the first customer to appear at the Larson lot on Saturday, Oct

Grace [21]

Answer:

Yes

Explanation:

Based on the information provided within the question we can say that Yes, the dealership is contractually bound to sell Mike the car at that price. This is assuming that the ad handed to the dealership by Mike is an actual ad that was designed and published by the dealership. If this is the case the dealership must uphold their price or it will be considered false advertisement and Mike would have a basis on which to sue the business.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

4 0

3 years ago