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Kay [80]
3 years ago
6

suppose the canadian government has decided to place an excise tax of $20 per tire on producers of automobile tires. excise taxe

s are also called sales or commodity taxes. previously, there was no excise tax on automobile tires. as a result of the excise tax, producers of tires, such as bridgestone and michelin, are going to alter their tire prices. the graph illustrates the demand and supply curves for automobile tires before the excise tax. please shift the appropriate curve or curves on the graph to demonstrate the new equilibrium.
Business
1 answer:
andrew11 [14]3 years ago
5 0

In order to determine the effect of the tax on the demand and supply graph, please check the attached image.

A tax is a form of transfer to wealth from businesses to the government. Taxes increase the price of goods and services. As a result of the tax levied on the producers of automobile tires, the cost of making tires would increase. This would make producing tires more expensive.

As a result of the increase in the cost of making tires, the production of tires would fall. As a result, there would be a leftward shift of the supply curve. This would lead to a rise in equilibrium price and a decrease in equilibrium quantity.

To learn more, please check: brainly.com/question/13499204?referrer=searchResults

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Suppose Ford Motor Company issues a five year bond with a face value of $5,000 that pays an annual coupon payment of $150.
blondinia [14]

Answer:

interest rate =  15%

value of the bond will decrease

Explanation:

given data

face value = $5,000

time = 5 year

annual coupon payment = $150

solution

we get here interest rate on the borrowed funds that will be as

interest rate = \frac{annual\ coupon}{face\ value/time}  × 100

put here value we get

interest rate =  \frac{150}{\frac{5000}{5} }  × 100

interest rate =  15%

and

when bond issued at interest rate =  3 %

but market interest rate 4%

so seller will reduce price of bond less than the face value

because we will look for atleast 4% payout when bond matures

so value of the bond will decrease

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ivolga24 [154]

Answer:

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4 0
3 years ago
he supplies account had a balance of $4,400 at the beginning of the year and was debited during the year for $2,400, representin
nexus9112 [7]

Answer:

$6,400

Explanation:

Financial Statements depicts the financial position of a firm at a particular point of time or specified date. The users of financial statements use various types of analysis to understand or compare the current financial statements of the company to prior years or with those of the competitors.

Supplies account is an asset account and has normal balance as debit balance. It increases with the purchase and decreases with the use of supplies.

Given:

Supplies (beginning) = $4,400

Purchased (supplies) = $2,400

Supplies (ending) = $400

Let supplies expense be x.

Now,

Supplies (ending) = Supplies (beginning) + Purchased (supplies) - Supplies expense

$400 = $4,400 + $2,400 - x

$400 = $6,800 - x

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Supplies expense = x = $6,400

6 0
3 years ago
Performance management differs from performance appraisal in that performance management _____.
AysviL [449]
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3 0
3 years ago
Golden has a receivable due in 30 days for 30,000 euros. The treasurer is concerned that the value of the euro relative to the d
attashe74 [19]

Answer:

The answer is c. Enter into a forward contract to sell 30,000 euros in 30 days

Explanation:

The risk Golden is facing is the exchange rate risk. Specially, as of the firm's concern, 30,00 euros they will receive in 30 days will not be worth as much as it is now because the Euro is expected to be depreciated against the firm's domestic currency.

So, they may enter into a forward contract allowing them to sell 30,000 euros in 30 days ( take short position in Euro) at pre-determined exchange rate. By doing so, they effectively eliminate the exchange rate risk by lock-in the exchange rate at the day they receive 30,000 euro.

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