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scoundrel
1 month ago
12

Suppose the government introduces a $4 per unit tax on the supply of automobile tires (suppliers are responsible for submitting

the tax payment). The effect of the tax on the market price for tires will depend most directly upon:
labor union negotiations in the automobile manufacturing industry.
price elasticities of supply and demand.
the political affiliation of the tire sales association.
the level of demand for tires.
Business
1 answer:
marusya05 [3.7K]1 month ago
6 0

Answer:

The right answer is: price elasticity of supply and demand.

Explanation:

A tax of $4 per unit on automobile tire supply has been enacted by the government. Suppliers are responsible for this tax. Importantly, the outcome will remain unchanged regardless of whether the burden is on the buyer or the seller. Enforcing this tax will result in a rise in the commodity's price.

The distribution of the tax burden between buyers and sellers directly correlates with demand and supply elasticity. If demand is significantly more elastic relative to supply, suppliers will carry a larger portion of the tax burden, and vice versa.

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On January​ 1, 2017,​ Sophie's Sunlounge owned 4 tanning beds valued at​ $20,000. During​ 2017, Sophie's bought 3 new beds at a
Nady [3600]

Answer:

Net Investment amounts to 4,000

Explanation:

Gross Investment is calculated to be 10,000

Depreciation can be determined as Market Value minus Book value

Depreciation = 26,000 - 20,000

Depreciation = 6,000

Net Investment is then calculated as Gross Investment minus Depreciation

Net Investment = 10,000 - 6,000

Net Investment equals 4,000

Note: Gross investment for 2017 includes the 3 new beds acquired during 2017 for a total cost of 10,000. The Net investment calculation starts by determining the depreciation, which is obtained by subtracting the book value from the market value.

4 0
2 months ago
Because of the high volume of bicycles as a common form of transportation in Beijing and Shanghai, Carl wants to sell his bicycl
Scilla [3833]

Answer:

Economically speaking, Carl's business outlook is subject to variations in the currency values of the US and China.

Explanation:

  • The agreement that Carl plans to propose is sensitive to the fluctuation that occurs if the Chinese Yuan depreciates against the US dollar after he begins selling the bicycle horns, which could result in financial losses for him.
  • Thus, whether Carl will gain a profit or suffer a loss hinges entirely on the exchange rates of the two currencies.
8 0
2 months ago
How does the buying decision process differ when consumers are shopping on the Internet or mobile device compared with shopping
Scilla [3833]

Explanation:

The process of making purchase decisions online or through mobile devices differs from shopping in physical stores based on the unique aspects of each shopping setting.

As outlined by Kotler and Keller, the consumer purchase decision process consists of five stages:

  1. recognition of problem or need,
  2. searching for information,
  3. assessment of alternatives,
  4. actual purchase,
  5. behavior after purchase.

Consequently, consumers define the key attributes crucial for making purchases and which features yield the most advantages.

In today's world, the online shopping industry has expanded dramatically since most people now have internet access, prompting companies to enhance their online presence, which ensures the capability to also provide consumers with increased benefits, such as better discounts and promotions, due to reduced systematic and physical expenses associated with internet sales.

As a result, online shops, in comparison to brick-and-mortar stores, are more inclined to offer customers benefits during and after the purchase, alongside a wider selection of products and brands, thus broadening consumer options.

4 0
2 months ago
A company's unit costs based on 100,000 units are: Variable costs $75 Fixed costs 30 The normal unit sales price per unit is $16
Free_Kalibri [3773]

Answer:

Incremental profit = $30000

thus, the correct choice is a. $30,000

Explanation:

provided data

Variable costs = $75

Fixed costs = 30

Sales price = $165

to determine

incremental profit or loss  from approval

solution

The contribution per unit is calculated as follows:

Contribution per unit = $165 - $75

Contribution per unit = $90

Consequently, we determine the loss on contribution from forgoing regular sales:

Loss on contribution = $3000 × $90

Loss on contribution = $270000

Furthermore,

The incremental contribution for the special order is calculated as:

Incremental contribution = (135 - 75) × 5000

Incremental contribution = $300000

Thus, the incremental profit equates to:

Incremental profit = $300000 - $270000

Incremental profit = $30000

therefore, the correct option is a. $30,000

8 0
2 months ago
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