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3 years ago

A $1 per unit tax levied on consumers of a good is equivalent to

1 answer:

7 0

Based on accounting principles, a $1 per unit tax levied on consumers of a good is equivalent to "a $1 per unit tax levied on producers of the good."

This is based on the idea that the market reaches the exact equilibrium price irrespective of who is accountable for paying the money to the government.

In other words, when the government levies a tax on a good, producers are not exempted from the tax levy because that money will be recouped from the producers' sales or revenue.

Hence, in this case, it is concluded that tax on goods is inevitable to consumers and producers.

Learn more here: brainly.com/question/22680521

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His income increased dramatically;from$5000 a year to $60,000 a year. Jim decides that instead of using the bus, he would buy a

svet-max [94.6K]

Answer:

This implies that bus is an inferior good and car is a normal good.

Explanation:

Initially, Jim's income was $5000 a year.

As his income increases to $60,000 a year, he decides to buy a car instead of using the bus.

In other words, with the increase in income, the demand for traveling by bus is declining.

This implies that it is an inferior good.

The demand for the car is increasing with an increase in income.

So, the car is a normal good.

An inferior good can be defined as a product that shows negative elasticity. This means with an increase in income its demand declines an vice versa.

A normal good can be defined as a product that shows positive income elasticity. That is, its demand increases with rise in income and vice versa.

4 0

3 years ago

A company introduced a new low calorie version of one of its popular cold drinks. as a result, the sales of the original cold dr

sashaice [31]

This situation is known as cannibalization. Cannibalization is a marketing strategy that refers to the reduction company's see in there sales volume, revenue or market share of a current product when they release a new product. When a company releases a new product, those who are fans of their other products will likely try the new product instead of the hold which initially brings down the volume they sell and make from the initial product.

4 0

3 years ago

Angell Inc. hired you as a consultant to help them estimate their cost of capital. You have been provided with the following dat

DIA [1.3K]

Answer:

Option (D) is correct.

Explanation:

Given that,

Dividend, D0 =$1.20

Price, P0 = $50.00

Growth rate, g = 6% (constant)

Based on the DCF approach, then

Cost of Equity:

= [D0 × (1 + g) ÷ P0] + g

= [(1.20 × (1 + 0.06)) ÷ 50] + 0.06

= (1.272 ÷ 50) + 0.06

= 0.02544 + 0.06

= 0.08544 or 8.54%

Hence, the cost of equity from retained earnings is 8.54%.

3 0

3 years ago

Refer to the following table to answer the following questions:

sineoko [7]

Answer:

Following are the answer to this question:

In question first, the answer is "Option d".

In question second, the answer is "Option e".

In question third, the answer is "Option e".

In question fourth, the answer is "Option e ".

In question fifth, the answer is "Option b".

Explanation:

Given values:

$Checkable \ deposits = \$ 400,000,000\\Currency = \$ 340,000,000\\Traveler's \ checks = \$ 4,000,000\\Money \ market \ mutual \ funds = \$ 50,000,000\\Small \ time \ deposits = \$ 6,000,000\\Savings \ deposits = \$ 850,000,000\\$

Solution:

$\text{M1= currency +checkable deposits + travellers check}$

= $400000000+$340000000+$4000000

= $744000000

$\bold{\text{M2 = M1 +money market mutual funds + small time deposit+ saving deposit}}$

= $744000000 + $50000000+$6000000+$850000000

= $1,650,000,000

Saving account deposits, which means its amount of money increased throughout the M2 portion regular savings account. So M2 will grow
Its increase in the number of employees may not impact the balance sheet with banks, because each bank maintains its entire cash flow
For banks, loans are investments if they're lending money as a bank to people. So, it's on income statement asset side

3 0

3 years ago

The margin of safety ratio is computed as actual sales divided by break-even sales. is used to determine the break-even point. i

max2010maxim [7]

Answer:

indicates what percent decline in sales could be sustained before the company would operate at a loss.

Explanation:

Since, Margin of safety ratio = Expected Sales - Break even sales

therefore,

The correct statement is : The margin of safety ratio indicates what percent decline in sales could be sustained before the company would operate at a loss.

8 0

3 years ago