All categories

3 years ago

Elasticity of damand

1 answer:

8 0

Price elasticity of demand, is the degree to which the effective desire for something changes as its price changes. In general, people desire things less as those things become more expensive

You might be interested in

Suppose a tax of $4 per unit is imposed on a good, and the tax causes the equilibrium quantity of the good to decrease from 2,00

Marina CMI [18]

Answer:

option (c) $600

Explanation:

Given:

Tax = $4 per unit

Initial equilibrium quantity = 2,000 units

Final equilibrium quantity = 1,700 units

Decrease in consumer surplus = $3,000

Decrease in consumer surplus = $4,400

Now,

Deadweight Loss is calculated using the formula:

Deadweight loss

= $\frac{1}{2}$ × Tax × (Original equilibrium quantity - New equilibrium quantity)

on substituting the respective values, we get

Deadweight loss = $\frac{1}{2}$ × 4 × (2,000 - 1,700)

Deadweight loss = 2 × (3) = $600

Hence,

the correct answer is option (c) $600

4 0

3 years ago

Allie is having three friends over to order pizza and watch a movie that just came out on DVD. She wants to make sure that she i

Lana71 [14]

Hey there,

Allie could look up coupon and discount deals for the pizza. She could ask each of her friends to chip in a small amount of money to help with the costs. Another thing she could do is compare the prices of DVD's from various stores.

4 0

3 years ago

Read 2 more answers

Basically, nations trade: Question 10 options: in order to stockpile goods in case of national disaster or emergency. in order t

IgorLugansk [536]

Answer:

because no nation's economy can produce all of the goods and services that it needs.

Explanation:

In simple words, International trade refers to the exchange of goods and services that occurs between the nations around the world for over all welfare and development of world economy.One of the major reasons behind such exchange is the opportunity cost of producing the same good differs among nations significantly.

For instance, a product that belongs to the labor intensive industry could be produced in India easily while as technology intensive good is feasible in America.Also due to difference of availability in natural resources some economies might not be able to produce some goods altogether.

8 0

3 years ago

People who receive the benefit of a good without contributing to its costs of production are called?

masha68 [24]

Free riders are those who gain from a thing without contributing to its manufacturing expenses.

<h3>When the creation of a thing incurs external expenses, the?</h3>

An external cost occurs when the production or use of a goods or service imposes a cost (negative effect) on a third party.
If a good has external costs connected with it (negative externalities), the social costs will be larger than the private cost.
Market failure may occur in the presence of external expenses. This is because the free market frequently ignores the existence of external expenses.
The cost to a third party of consuming/producing one more unit is known as the external marginal cost (XMC).

learn more about external costs refer:

brainly.com/question/14203073

#SPJ4

5 0

1 year ago

The manufacturing overhead budget at Polich Corporation is based on budgeted direct labor-hours. The direct labor budget indicat

just olya [345]

Answer:

Predetermined manufacturing overhead rate= $22.2 per direct labor hour

Explanation:

Giving the following information:

Fixed manufacturing overhead= $127,840 per month

Estimated direct labor hours= 9,400

The variable overhead rate is $8.60 per direct labor hour

<u>To calculate the predetermined manufacturing overhead rate we need to use the following formula:</u>

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate= (127,840 / 9,400) + 8.6

Predetermined manufacturing overhead rate= $22.2 per direct labor hour

7 0

2 years ago

Elasticity of damand​

Elasticity of damand