Answer:
Option B.
No, a binding price ceiling benefits only some buyers because not all are able to obtain the goods in the legal market.
Explanation:
A binding price ceiling occurs when the government sets a required price on a good or goods at a price below equilibrium. Since the government requires that prices not rise above the price, that price binds the market for that good. Because the government keeps the price artificially low, businesses will not produce enough of those goods to satisfy the market.
This results in an insufficient supply of those goods, creating a shortage in those goods, and with a shortage of goods, only some of the buyers will be able to obtain the goods in the legal market.
Therefore, the option that best suits the question is option, B. Not all buyers benefit from a binding price ceiling. A BINDING PRICE CEILING BENEFITS ONLY SOME BUYERS BECAUSE NOT ALL ARE ABLE TO OBTAIN THE GOOD IN THE LEGAL MARKET.
Answer:1) how responsive quantity demanded is to changes in income--A 2) income elasticity of demand for butter is 0.11. That means butter is a luxury good---A
Explanation:
1) Income elasticity of demand refers to the responsiveness of the quantity demanded for a certain good to a change in income of consumers who purchase this good.The higher the income elasticity of a good, the greater the consumers' response in their purchasing lifestyle.
The formula for Income elasticity of demands given by
The percent change in quantity demanded divided by the percent change in income.
2) Income elasticity of demand, helps us to identify if a particular good represents a necessity or a luxury.
-when the income elasticity for a good is less than 1(ie from 0-1) we say that the good is a normal good. these goods are also called necessity goods and consumers will purchase them irrespective of the changes in their income eg water, electricity
- when the income elasticity of a good is greater than 1 , we say that the good is a luxury good. eg butter
- An inferior good is one with a negative income elasticity which means rising incomes will lead to a drop in demand.
Answer:
d. 3 years
Explanation:
Missing question: <em>'Year Income from Operations Net Cash Flow. 1 $100,000 $180,000, 2 40,000 120,000, 3 20,000 100,000, 4 10,000 90,000, 5 10,000 90,000"</em>
<em />
Year Income from Net cash Investment Unrecovered Investment
Operations Flow at the end of year
0 400,000 400,000
1 100,000 180,000 220,000
2 40,000 120,000 100,000
3 20,000 100,000 -
4 10,000 90,000 (90,000)
5 10,000 90,000 (180,000)
Entire investment is recovered by the end of 3 year. So, pay back period is 3 Years.
<span>Carmex is using the Target Pricing strategy in order to be able to keep an higher price and yet having the desirable amount of sales. This strategy has three key points:
1) identifying the price at which a product will still be competitive
2) defining the profit to be made when selling the product, based on what demography is willing to buy
3) Finding the target price with the data previously found</span>
Answer:
b. the marginal cost of one more glass of lemonade is smaller than if output were high.
Explanation:
Since the Thirsty Thelma operates in small lemonade stand and when she produced a low quantity of lemonade she has fewer workers plus her equipment is also not fully utilized
So she put her idle resources to use for one more glass of lemonade as if its output is high
Hence, the second option is correct
