Suppose a tax of $3 per unit is imposed on a good. The supply curve is a typical upward-sloping straight line, and the demand curve is a typical downward-sloping straight line. The tax decreases consumer surplus by $3,900 and decreases producer surplus by $3,000. The tax generates tax revenue of $6,000. The tax decreased the equilibrium quantity of the good from A. 2,400 to 2,000. B. 2,600 to 2,000. C. 3,000 to 2,400. D. 2,000 to 1,500.

Answers

Answer 1
Answer:

Answer:

B. 2,600 to 2,000.

Explanation:

tax revenue = units x tax rate

units = tax revenue / tax rate = 6,000/3 = 2,000

2,000 will be the quantity after taxes.

6000 goverment revenue - 3900 consumer surplus - 3000 producer surplus

900 deathweight loss

(tax x ↓unit)/2 = deathweight loss

(3 x ↓unit)/2 = 900

(3 x ↓unit) = 900 *2

↓unit = 1800/3 = 600

It decrease to 2000 from 2600

Answer 2
Answer:

Final answer:

A $3 per unit tax creates a wedge between the price paid by consumers and the price received by producers, representing a production cost increase. This results in a leftward shifted supply curve, with reduced consumer and producer surplus. The burden of the tax is shared, decreasing the equilibrium quantity of goods.

Explanation:

When a $3 per unit tax is imposed on a good, the government creates a wedge between the price paid by consumers and the price received by producers. The distance between these prices equals the tax rate.

The new market price is the price paid by consumers, but sellers receive less per unit sold as they pay the difference (tax) to the government. This tax is akin to an increase in production cost, symbolized by a leftward shift of the supply curve. The new supply curve intercepts the demand at the new quantity.

The tax revenue is found by multiplying the tax per unit by the total quantity sold. The tax incidence, or burden, is shared by both consumers and sellers. In this case, the consumers' surplus decreased by $3,900 and the producers' surplus decreased by $3,000, causing a total tax revenue of $6,000 and a decrease in the equilibrium quantity of goods.

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Identify each of the following statements about linear programming problems as true or false, and then justify your answer.a. For minimization problems, if the objective function evaluated at a CPF solution is no larger than its value at every adjacent CPF solution, then that solution is optimal.
b. Only CPF solutions can be optimal, so the number of optimal solutions cannot exceed the number of CPF solutions.
c. If multiple optimal solutions exist, then an optimal CPF solu-tion may have an adjacent CPF solution that also in optimal.

Answers

Answer and Explanation:

a. The given statement is true as the corner point at the objective function should be feasible solution which is no longer as compared with the value for every adjacent CPF solution as compared with its optimal

b. The given statement is false as the solution can be an edge

c. The given statement is true as it shows the direct relation between the two things

Final answer:

In linear programming problems, CPF solutions can be optimal and if multiple optimal solutions exist, an optimal CPF solution may not have an adjacent CPF solution that is also optimal.

Explanation:

a. True: For minimization problems, if the objective function evaluated at a CPF solution is no larger than its value at every adjacent CPF solution, then that solution is optimal. This is because in a minimization problem, the goal is to find the solution that minimizes the objective function.

b. True: Only CPF solutions can be optimal, so the number of optimal solutions cannot exceed the number of CPF solutions. CPF stands for Corner-Point Feasible, which means solutions that lie on the corner points of the feasible region.

c. False: If multiple optimal solutions exist, an optimal CPF solution may not have an adjacent CPF solution that is also optimal. This is because adjacent CPF solutions may have different objective function values.

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Stayman Co. declared a 30% stock dividend. This transaction A) Increases total equity and retained earnings. B) Decreases total equity and retained earnings. C) Has no effect on total equity or retained earnings. D) Has no effect on total equity but decreases retained earnings.

Answers

Answer:

D) Has no effect on total equity but decreases retained earnings.

Explanation:

Dividends refer to the distribution of profits to the common stock holders.

This is basically an appropriation of profits.

When dividends are declared, then the retained earnings are reduced and a liability is created.

Announcing and declaring a dividend is a right to claim dividend by shareholders.

Thus, it do not affect the equity at all, but a liability is created and the moment dividend is paid liability is settled.

Part Three: Neighboring WSU dropped their tuition and fees by 14 percent and TTA saw enrollment fall from 8,400 to 7,400. What is the cross elasticity between the two schools.?

Answers

Answer:

0.85

Explanation:

Given that

Dropped percentage of tuition and fees = 14%

Enrollment fall from 8,400 to 7,400

So, the cross elasticity between the two schools is

= Percentage change in quantity demanded of one good ÷ Percentage change in price of another good

where,

Percentage change in quantity demanded of one good equals to

= ($7,400 - $8,400) ÷ ($8,400)

= -11.9%

And, the percentage change in price of another good is -14%

So, the cross elasticity is

= -11.9% ÷ -14%

= 0.85

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Answers

Answer:

A kickoff event's objective is to formally tell-all project stakeholders that the project has started. It introduces the team and assists them in understanding the project's requirements, history, and individual duties.

Explanation:

Kiera’s dog walking business is booming, and she is interested in expanding. In order to expand, her company needs more customers, and the demand for dog walking in her neighboring communities must increase in order for her to generate a profit. Her best friend, a local celebrity, suggests that she should consider marketing her services. Because Kiera understands that there are specific challenges associated with developing advertising objectives for services, she is very careful about how to advertise her dog walking services. In the end, she decides to develop a logo for her company so customers can associate it with the services she provides. ​ How did Kiera make her intangible services more marketable?​

Answers

Answer:

The correct answer to the following question will be "S​he enhanced her brand image".

Explanation:

  • Keira dramatically improved her brand reputation by getting ready a logo to promote her unquantifiable facility of various dog walking the dog. Designed to enhance the brand identity requires connecting with the clients regarding your brand as well as trying to make your provider or good extra attractive to the users. That is among the most powerful advertising moves.
  • Keira aims to grow its market here by generating more competition for its intangible growing organization. For all of this she chooses to help improve her brand value so that she can get so many requirements for her provider as well as make higher revenue.

So that the above is the right answer.

Kincaid Company provided consulting service of $2,500 to a customer who paid $1,300 and promised to pay the remainder next month. Which of the following journal entries correctly records this transaction? a. Cash1,300 ,Accounts payable1,200, Consulting revenue 2,500b. Cash1,300, Accounts receivable1,200, Consulting revenue2,500c. Cash1,300, Consulting revenue1,300, Consulting revenue2,50d. Cash1,300, Accounts receivable1,200

Answers

Answer:

The journal entry correctly records this transaction is:

b. Cash 1,300, Accounts receivable 1,200, Consulting revenue 2,500

Explanation:

Kincaid Company provided consulting service of $2,500 to a customer, the company record revenue for consulting service of $2,500

Customer paid $1,300 and promised to pay the remainder next month, the company record cash received of $1,300 and the remainder by decreasing accounts receivable of $1,200 by the entry:

Debit Cash $1,300

Debit Accounts receivable $1,200

Credit Consulting revenue $2,500

Final answer:

The correct journal entry to record this transaction is option b: Cash1,300, Accounts receivable1,200, Consulting revenue2,500.

Explanation:

The correct journal entry to record this transaction is option b: Cash1,300, Accounts receivable1,200, Consulting revenue2,500.


The entry debits Cash for $1,300, which represents the amount received in cash from the customer. It credits Accounts Receivable for $1,200, which represents the remaining amount the customer promised to pay next month. Finally, it credits Consulting Revenue for $2,500, which represents the total amount of revenue earned from the consulting service provided.

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