The change in the elasticity of supply or demand influences who bears the burden of a tax, with inelastic supply leading to sellers bearing more of the tax burden, and elastic supply allowing sellers to adjust and pass the tax burden onto consumers. Elasticity of demand also impacts tax incidence, with inelastic demand causing consumers to bear the burden and elastic demand resulting in sellers bearing the burden.
A change in the elasticity of supply or demand in a market for a good that is taxed would tend to affect who bears the economic burden of the tax, regardless of who is legally responsible for paying it. When the government increases a tax on a good, the supply curve shifts to the left, leading to a higher price for consumers and a lower price for sellers. However, this does not change the elasticity of supply or demand.
When supply is inelastic, sellers are less able to alter their production in response to the tax, thus the tax burden falls more heavily on them, and the equilibrium quantity remains relatively unchanged. Conversely, when supply is elastic, they have more flexibility to adjust their production or potentially avoid supplying the taxed good, reducing the tax burden on them and leading to a greater reduction in the quantity sold rather than a decrease in price received.
The elasticity of demand also plays a role in tax incidence. If demand is inelastic, consumers continue to buy the product despite higher prices, and the tax is mostly passed on to them. If demand is elastic, consumers are more sensitive to price changes, and they reduce their quantity demanded, which means that sellers must bear more of the tax burden.
Midyear on july 31st, the baldwin corporation's balance sheet reported: total assets of $166.859 million total common stock of $5.080 million cash of $8.040 million retained earnings of $36.411 million. what were the baldwin corporation's total liabilities?
For the past several decades in the united states, disposable income has been most closely linked with
Final answer:
Disposable income in the United States has been most closely linked with consumption, as seen from historical data between 1962 and 2010, with consumption being approximately 91% of the disposable income.
Explanation:
For the past several decades in the United States, disposable income has been most closely linked with consumption. This is evident from the historical data that shows both consumption and disposable income grew substantially from 1962 to 2010. The close relationship between the two is highlighted by the fact that consumption expenditures are, on average, about 91 percent of disposable income. Additionally, empirical evidence from this period shows consumption generally changes in the same direction as disposable personal income.
Instances like the tax cut in February 1964, which led to an increased disposable income, resulted in a corresponding rise in consumption expenditures. With these historical patterns, it is understood that economic policies affecting disposable income can have significant impacts on consumption behavior.
In terms of the evolution of payment and exchange, wage labor is more developed than piecework payment because under wage labor:
A sole proprietor of a farm implement store sold a truck for $15,000 that had been used to make service calls. the truck cost $30,000 three years ago, and $21,360 depreciation was taken. what is the appropriate classification of the $6,360 gain for tax purposes?
a. section 1231 gain.
b. long-term capital gain.
c. ordinary gain.
d. short-term capital gain
The $6,360 gain from the sale of a truck used in a farm implement store is classified as a Section 1231 gain since it's from a business asset held for more than one year. The correct option is a.
The gain on the sale of the truck used for service calls in a farm implement store would be classified as a Section 1231 gain. The truck was a business asset that was held for more than one year, originally costing $30,000 with $21,360 in depreciation taken. Upon selling the truck for $15,000, the sole proprietor realized a gain of $6,360. Since the asset was used in a trade or business and was held for longer than one year, the gain is treated as Section 1231 gain, which is subject to preferential tax treatment and may be taxed at long-term capital gains rates if positive Section 1231 gains exceed Section 1231 losses for the tax year.
Monopolistic competitors in the food industry will often include a recyclable symbol on packaging used for their product as a means to
A _____________ allows for an mtu as high as 9198 bytes.â
The fedâs three basic tools operate by adjusting interest rates (rental price of money) and the __________ of money.
The FEDAS three basic tools operate by adjusting interest rates (rental price of money) and the supply of money.
What are Interest rates?The amount of interest due each period expressed as a percentage of the amount lent, deposited, or borrowed is known as an interest rates. The total interest on a loaned or borrowed sum is determined by the principal amount, the interest rate, the frequency of compounding, and the period of time the loan, deposit, or borrowing was made.
The amount that the lender charges the borrower over and beyond the principal amount is referred to as the interest rates. A person who deposits money in a bank or other financial institution also earns additional income in terms of the recipient, known as interest, taking into account the time value of money.
Therefore the interest rates affected by the economy's health and people's propensity to save money. In a free market where supply and demand are in play, interest rates are set. the inflation rate, the borrower's level of risk and the interest's tax treatment.
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A conventional cash flow pattern associated with capital investment projects consists of an initial ________.
Suppose that disposable income, consumption, and saving in some country are $800 billion, $700 billion, and $100 billion, respectively. next, assume that disposable income increases by $80 billion, consumption rises by $56 billion, and saving goes up by $24 billion.
a. what is the economy’s mpc?
The economy's MPC is calculated as the increase in consumption divided by the increase in disposable income, which is 0.7 in this scenario. The MPS is the remainder after accounting for consumption, which is 0.3, given MPC + MPS = 1.
Explanation:The marginal propensity to consume (MPC) is a key concept in economics that describes the proportion of additional income that is spent on consumption. According to the information provided, the economy's MPC can be calculated by dividing the increase in consumption by the increase in disposable income. With a consumption increase of $56 billion and an income increase of $80 billion, the MPC would be 0.7 (56/80). Similarly, the marginal propensity to save (MPS) describes the proportion of additional income that is saved. Since the MPS must be the remainder of the additional income that is not consumed, and given that MPC + MPS = 1, the MPS in this scenario would be 0.3 (24/80).
Understanding the MPC is crucial as it plays a role in predicting how consumption will change as income changes. If, hypothetically, income starts at zero, there should be some base level of consumption due to the necessity of sustaining life. Based on the assumption of $600 billion of consumption at zero income, this example shows us how the consumption function operates as income levels rise.
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List three benefits of being financially responsible.\
The zeerocks corporation is a rapidly growing company that just experienced a very profitable quarter. the company's board of directors announced that they have decided not to pay a dividend to common stockholders. this suggests that
Whether a firm has growth or value and how this firm characteristic affects an estimate of the cost of equity is called the _____.
Which of these is the final step in the rational choice decision making process?
Evaluating decision outcomes represent the final step in the rational choice decision making process.
To add, decision making is the action of making choices by identifying a decision, gathering information, and assessing alternative resolutions. Utilizing a step-by-step decision-making action can help a person make thoughtful and more deliberate decisions thru organizing relevant defining alternatives and information.
In 2003, several investment banking firms were fined $1.4 billion for ethics abuse related to the underwriting process. will this be a deterrent for ethical lapses?
One of the shortcomings of direct marketing is that the firm cannot easily measure the response.
a. True
b. False
British airways employed _____ when it used product placement to make sure that viewers of the movie die another day knew that james bond flies first class on a british airways plane. (the scene occurs late in the movie.) the airline ran advertising campaign based around the slogan, "save your pennies, fly like bond," referring to the secretary that bond flirts with in each film. british airways also paid for the rights to screen the film on its flights before the movie was available at video stores.
British airways employed integrated marketing communications when it used product placement to make sure that viewers of the movie die another day knew that james bond flies first class on british airways. The airline ran advertising campaign based around the slogan, save your penny’s fly like bond referring to the secretary that bond flirts with in each film. British airways also paid for the rights to screen the film on its flights before the movie was available at video stores. Integrated marketing communications is the usage of marketing approaches to improve the communication of a reliable message of the company's products to stakeholders.
British Airways utilized product placement and advertising to associate their first-class service with the prestigious image of James Bond, further promoted by exclusive in-flight screenings before release at video stores.
Explanation:British Airways employed marketing strategies when it used product placement in the movie Die Another Day to convey that James Bond flies first class on a British Airways plane. This form of advertising also included a campaign with the slogan, "Save your pennies, fly like Bond," capitalizing on the prestige associated with the James Bond character. Moreover, securing the rights to screen the movie on their flights before it was available at video stores was part of their exclusive promotional activities.
A company's inventory balance at 12/31/16 was $191,600 and $204,000 at 12/31/15. its accounts payable balance at 12/31/16 was $88,000 and $83,600 at 12/31/15, and its cost of goods sold for 2016 was $724,000. the company's total amount of cash payments for merchandise in 2016 equals:
"reducing taxes in response to a recession is an example of _____ policy."
The answer to this question is a Fiscal Policy. Fiscal policy is the ability of the Government to use taxes and its capacity to spend or expenditures to give an impact in the economy of the country. Fiscal policy is a tool that influenced or affects the economic activity of a country.
Problem 10-3 eastman publishing company is considering publishing an electronic textbook about spreadsheet applications for business. the fixed cost of manuscript preparation, textbook design, and web-site construction is estimated to be $160,000. variable processing costs are estimated to be $6 per book. the publisher plans to sell single-user access to the book for $46. (a) build a spreadsheet model in excel to calculate the profit/loss for a given demand. what profit can be anticipated with a demand of 3,500 copies? for subtractive or negative numbers use a minus sign.
Given a demand of 3,500 copies, Eastman Publishing Company is expected to incur a loss of $20,000 according to our calculation.
Explanation:The question involves a fundamental concept in cost accounting and business management, requiring us to calculate the profit or loss for Eastman Publishing Company. In this case, we use the equation for Profit: Profit = Total Revenue - Total Cost. Total Revenue is calculated by multiplying the price per book ($46) by the quantity sold (in this question we are considering a demand of 3,500 copies). Total cost is calculated by adding the fixed costs ($160,000) and the variable costs (which are the product of the variable cost per book ($6) and the quantity sold).
So, the calculation would be: Profit = ($46 * 3,500) - ($160,000 + $6 * 3,500).
Profit = $161,000 - $160,000 - $21,000.
Therefore, the expected profit given a demand for 3,500 copies would be -$20,000. Consequently, the company would incur a loss with this level of demand.
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When a relational expression is false, it has the value ________?
The sea wharf restaurant would like to determine the best way to allocate a monthly advertising budget of $1000 between newspaper advertising and radio advertising. management decided that at least 25 percent of the budget must be spent on each type of media and that the amount of money spent on local newspaper advertising must be
Suppose the baldwin company expands to other markets with good designs, high awareness and easy accessibility, what strategy would they be implementing
Fay pays $800 for a new ipad to global goods, inc. global holds the ipad until fay picks it up. global is
Final answer:
Global Goods, Inc. is considered a bailee when holding Fay's iPad after she pays for it and until she picks it up. A bailee is responsible for the safeguarding of someone else's property temporarily in their possession.
Explanation:
When Fay pays $800 for a new iPad to Global Goods, Inc., and the company holds the iPad until Fay picks it up, Global Goods, Inc. serves as a bailee in this transaction. In legal terms, a bailee is an individual or entity that temporarily gains possession, but not ownership, of a good or property belonging to another, which in this case is the iPad belonging to Fay. The bailee has a responsibility to keep the good safe and return it to the bailor (Fay) in the same condition it was received once the agreed conditions are met.
Refer to redbox. redbox offers dvds from several production studios, such as disney, sony, and paramount. consumers just have to rent from redbox instead of obtaining the dvd from the various production studios if they want a children’s movie from disney and an action movie from paramount. thus, one kiosk provides _____ for both consumers and the production studios.
What would happen to your net worth if you sold a tangible asset you owned for $1,000 and used the money to pay off your credit card balance for $1,000?
If you sold a tangible asset you owned for $1,000 and used the money to pay off your credit card balance for $1,000, then your net worth would remain the same.
To add, the concept applicable to individuals and businesses as a key measure of how much an entity is worth is called net worth.
Assuming that the car was stolen prior to delivery to abc motors and without the knowledge of any representative of abc motors, what kind of title did abc motors have?
I believe in this case that ABC motors is the customer and the car was still being delivered to their office. Therefore the correct answer to this is:
The title of ABC motors would be “Void”
This is considered right away as Void since there was no information or any knowledge on the part of ABC motors about the stolen car.
Employees earn vacation pay at the rate of one day per month. during the month of july, 32 employees qualify for one vacation day each. their average daily wage is $107 per day. what is the amount of vacation benefit expense to be recorded for the month of july?
if jason’s fixed cost totals $800 with variable cost per unit of $10 at a quantity of 100 units, what would his average total cost equal?
Part of vicky's job as a production supervisor is to instruct each department on what work to do and the time in which they have to complete their work assignments. this part of her job is known as
The part of Vicky's job as a production supervisor that involves instructing each department on work assignments and deadlines is known as work planning and scheduling.
Explanation:The part of Vicky's job as a production supervisor that involves instructing each department on work assignments and deadlines is known as work planning and scheduling. It is crucial for Vicky to ensure that all departments are aware of their tasks and the timeframe within which they need to be completed to ensure a smooth workflow and timely completion of the overall production.
A machine with a cost of $65,000 has an estimated residual value of $5,000 and an estimated life of 5 years or 15,000 hours. it is to be depreciated by the units-of-production method. what is the amount of depreciation for the second full year, during which the machine was used 5,000 hours? $8,000 $12,000 $20,000 $21,667