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Art [367]
1 year ago
14

Indicate whether each of the statements is an example of a price ceiling or a price floor and whether it is binding or nonbindin

g.
1. Due to new regulations, donut shops that would like to pay better wages in order to hire more workers are prohibited from doing so.

2. The government has instituted a legal minimum price of $1.80 each for donuts.

3. The government prohibits donut shops from selling donuts for more than $1.10 each.
Business
1 answer:
tamaranim1 [39]1 year ago
3 0

Answer:

A price ceiling is a bar on the legal maximum price a commodity can be sold for  while a price floor is the least legal price a commodity can go for.

The price ceiling is always greater than the price floor  in this case it is not so, hence the price floor is not binding to the price ceiling.

the statements below is analyzed under price ceiling and price floor according to whether it is binding or nonbinding.

Explanation:

1. Due to new regulations, donut shops that would like to pay better wages in order to hire more workers are prohibited from doing so.

Statement one is neither a price ceiling nor a price floor and it is nonbinding

2. The government has instituted a legal minimum price of $1.80 each for donuts.

Statement two is a price floor and it is binding.

3. The government prohibits donut shops from selling donuts for more than $1.10 each.

Statement three is a price ceiling and it is binding.

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Global Tek plans on increasing its annual dividend by 15 percent a year for the next four years and then decreasing the growth r
ad-work [718]

Answer:

A) $1.82

Explanation:

the dividends discount model is used to determine the value of stock given the distributed dividends and the required rate of return:

current dividend $0.20 per stock

dividends year 1 =  $0.23 per stock

dividends year 2 =  $0.2645 per stock

dividends year 3 =  $0.3042 per stock

dividends year 4 =  $0.35 per stock

after year 4, we need to calculate the growing perpetuity = dividend / (return rate - growth rate) = $0.35 / (17.4% - 2.5%) = $0.35 / 14.9% = $2.35

now we must find the present value of the cash flows:

PV = $0.23/1.174 + $0.2645/1.174² + $0.3042/1.174³ + $0.35/1.174⁴ + $2.35/1.174⁵ = $0.1959 + $0.1919 + $0.188 + $0.1842 + $1.0537 = $1.82

6 0
2 years ago
The turnout for a game is expected to reach 70,000 fans, of which 60 percent are expected to drive. an average of 2 fans come in
vladimir1956 [14]
First, calculate for the number of fans that would come to the event in their own vehicle. This is calculated by multiplying the number of fans by the percentage.
    N = (70,000 fans)(0.60) = 42000
The number of vehicles is calculated by dividing the answer obtained above by 2.
   n = (42000) / 2 = 21000

The number of vehicles in the satellite parking is the difference of 21000 and 9000 which gives us an answer of 12000. Since each satellite parking will accommodate 1500, dividing 12000 by 1500 is 8.

ANSWER: 8 satellite parkings
4 0
1 year ago
Read 2 more answers
Devin is a landscaper who needs to prepare different types of grass seed for his customers' yards. Bluegrass seed costs \$2.00$2
KiRa [710]

Answer:

7 pounds

Explanation:

Let us assume the x for the 1 pound of bluegrass seed  and y for the pound of drought resistant seed

Now the first equation would be

x + y = 25    ............................ (i)

we can write

y = 25 - x

Now the second equation would be

2x + 3y = 68  .............................. (ii)

Now put  y value in the equation 2

So

2x + 3(25 - x) = 68

2x + 75 - 3x = 68

x= 7

Therefore the bluegrass seed is 7

Now for drought-resistant it would be

7 + y = 25

y = 18

8 0
1 year ago
Darius is considering buying new bedroom furniture. Naturally, he compares several types of beds, dressers, and bedside tables,
miss Akunina [59]

Answer: (B) The total product offering

Explanation:

 According to the question, Darius is evaluating the total offering of the products by comparing each products such as bedside table, beds and the dresses with the other brands.

By comparing one brand with the other brands, he evaluating the products price, warranty and the reputation.  

The total product offering is basically defined as the amount of the total products offered as the final output. The consumers are evaluating each product before busying the product.

Therefore, Option (B) is correct.

3 0
2 years ago
Management of Plascencia Corporation is considering whether to purchase a new model 370 machine costing $465,000 or a new model
Bond [772]

Answer:

Sunk cost = WDV of old machinery costing $431,000 - Any amount recovered.

Explanation:

Sunk cost is the cost that has actually been incurred and can not be avoided in any manner, currently while making both the decisions whether to buy model 220 machine or 370 machine we incurred the cost of dropping the old machinery of value of $431,000.

Therefore the book value of old machinery costing $431,000 is the sunk cost incurred in making the decision of buying new model.

In case any amount is recovered from sale of such amount then such amount recovered shall be deducted from the Written down value (WDV) of the old machinery and that will be our sunk cost.

Sunk cost = WDV of old machinery costing $431,000 - Any amount recovered.

5 0
2 years ago
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