Who could benefit from these price controls?

Answers

Answer 1
Buyers. They allocate scarce goods and services to buyers who are most willing and able to pay for them. They signal that a good is valued and that producers can profit by increasing the quantity supplied.
Answer 2

Answer:

Consumers and the government could benefit from price controls.

Explanation:

Edmentum/Plato


Related Questions

what are the "marketable" characteristics of snails?​

Answers

ANSWER: The major marketable characteristics of snail is it's nutritional value to our body. And the lesson we learn from them, when we feel depressed and anxious.

EXPLANATION: The snail is a very nutritious meat that contains protein, fat and oil, minerals, and vitamins. It protein content is more higher than that of birds egg. The slime from snail helps to treat dehydration, dry skin, stretch marks, damage tissues in the body, and many more. The snail has much value in markets, as it has become a boast to our daily nutritional content.

Some people buy snail, to help them meditate daily or during depression. This helps them to calm down their emotions as they watch the snail, because snail teaches a lesson of patience (in it's movement) and articulation ( in the fast way it responds by retreating into it's shell, when it sense strange signal).

Why do you think our economy continues to experience wage differences among groups - please
discuss with relevant examples?

Answers

Answer:

Las propuestas principales para revisar la determinación de los salarios, el valor (no) asignado al trabajo y sus efectos sobre hombres y mujeres incluyen: 1. la Economía de la familia y la división del trabajo por género; 2. las diferencias salariales por género: el capital humano y la discriminación en el mercado de trabajo; 3. el dualismo y segmentación del trabajo por género; 4. la segregación ocupacional por género; 5. la economía marxista y el género; 6. el género y la economía según las feministas; 7. la crisis económica y el género; 8. las mujeres y la recesión; 9. los estudios económicos con perspectiva de género y 10. la explotación de las fuentes estadísticas

Explanation:

A firm has developed a new kind of knitting needle and they want to know if experienced knitters will see it as an improvement. The firm
should hire a(n).
O standardized marketing firm
O syndicated marketing firm
customized marketing firm
O internal marketing firm

Answers

Answer:

1. This football match is ……..we have ever played.

Which is correct? I need help please!!

Which is correct? I need help please!!

Answers

the answer is hold team members accountable for the team’s performance.

Sales 101 teaches you to: Always just answer the question the customer has Never try to get more information about what the customer needs Always answer a question with another question Never look the customer in the eye

Answers

Answer:

I think it's A) Always just answer the question the customer has.

Explanation:

I know it's not D) "Never look the customer in the eye."

I don't think it's C) "Always answer a question with another question" that just seems like it would be confusing for the customer.

And I don't think it's B) "Never try to get more information about what the customer needs" because part of you're job as a salesman is find out what the customer needs.

So that leaves answer choice A

In 2023, Indiana Jones made the following charitable contributions:

Donee Property AGI limit Cost FMV
City Hospital Cash 60% $ 20,000 $ 20,000
Salvation Army Clothes 50% $ 4,000 $ 1,500
State University IBM stock 30% $ 15,000 $ 25,000

Determine the maximum amount of charitable deduction for Indiana Jones’s contribution in 2023, if his AGI is $100,000 this year. You may assume that the stock has been owned for 10 years.

Answers

The maximum amount of charitable deduction for Indiana Jones's contributions in 2023, with an AGI of $100,000, would be $46,500.

To determine the maximum amount of charitable deduction for Indiana Jones's contributions in 2023, we need to calculate the deductible amount for each contribution based on the AGI limits and the type of property donated.

1. City Hospital Cash: Since it is a cash donation, the deductible amount is limited to 60% of Indiana Jones's AGI. Therefore, the deductible amount for this contribution would be $20,000.

2. Salvation Army Clothes: As this is a donation of clothes, the deductible amount is limited to 50% of Indiana Jones's AGI. However, the deductible amount cannot exceed the lesser of the property's cost or fair market value (FMV). In this case, the deductible amount would be $1,500, which is the FMV of the donated clothes.

3. State University IBM Stock: Since it is a donation of appreciated stock that has been owned for more than a year, the deductible amount is limited to 30% of Indiana Jones's AGI. However, the deductible amount cannot exceed the lesser of the property's cost or FMV. In this case, the deductible amount would be $25,000, which is the FMV of the donated IBM stock.

To calculate the maximum charitable deduction, we need to sum up the deductible amounts of all the contributions:
$20,000 (City Hospital Cash) + $1,500 (Salvation Army Clothes) + $25,000 (State University IBM Stock) = $46,500

Therefore, the maximum amount of charitable deduction for Indiana Jones's contributions in 2023, with an AGI of $100,000, would be $46,500.

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You can earn 3% interest on a CD and 1.25% interest on a savings account.
How much more interest will the CD earn for one year if you make a deposit of
$1,650?



Financial Lit, please help!!

Answers

Answer:

The CD will earn $49.50 more interest than the savings account for one year if you make a deposit of $1,650.

Raoul buys a new cell phone with his credit card. This new charge means his debt will

Answers

Answer:

increase

Explanation:

i bench 225

what is price elascity of demand?
i,A mearure of the extent to which price changes when the quantity demandes changes
ii,A measure of the extent to which the quantity demanded changes when price changes
iii,A measure of the extent to which total revenue changes when price changes
iv,A measure of the extent to which price changes when total revenue changes
*-CHOOSE THE CORRECT ANSWER-*​

Answers

The price elasticity of demand is ii. A measure of the extent to which the quantity demanded changes when the price changes.

Price elasticity of demand (PED) is a concept used in economics to understand how sensitive the demand for a good or service is to changes in its price. It measures the percentage change in quantity demanded in response to a 1% change in price. If the demand is highly responsive to price changes, the demand is said to be elastic. If the demand is less responsive to price changes, it is considered inelastic.

A high price elasticity of demand indicates that consumers are very sensitive to price changes, resulting in a relatively large change in the quantity demanded. This often occurs with goods or services that have readily available substitutes, where consumers can easily switch to alternatives if prices rise.

Conversely, a low price elasticity of demand indicates that consumers are not very responsive to price changes, resulting in a relatively small change in the quantity demanded. This often occurs with goods or services that are necessities or have limited substitutes, where consumers are willing to pay higher prices despite changes in price.

Understanding the price elasticity of demand is crucial for businesses and policymakers in determining pricing strategies, forecasting demand, and assessing the impact of price changes on total revenue. By knowing the price elasticity of demand, producers can adjust prices strategically to maximize revenue or market share based on consumer responsiveness to price changes. Therefore, the correct option is ii.

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Double declining balance

Answers

The double-declining balance method is an effective way to depreciate assets in the early years of their useful life and reduce the balance of the asset more quickly than the straight-line method. This helps companies to account for the asset's cost more accurately over time and to recognize its diminishing value as it ages.

Double-declining balance method is a method of depreciation that is an accelerated method.

The depreciation rate is twice as much as the straight-line method's depreciation rate.

This method begins with an asset's value at the beginning of its use and then decreases at a constant rate throughout its useful life until it reaches the asset's salvage value.

This depreciation method is most commonly used for assets that depreciate quickly at the beginning of their useful life and then slowly depreciate over time until they are scrapped or sold.

Assets such as computers, vehicles, and machinery are common examples of assets that use this method of depreciation.

Double-declining balance method can be calculated using the following formula:Annual depreciation = (2 / useful life in years) * book value at the beginning of the yearOrDepreciation rate = 2 / useful life in years.

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Problem-6; (chapter 3) SS Ltd. obtained significant influence over YY Ltd by buying 30% of Y's 100,000 outstanding ordinary shares at a cost of Br 18 per share on January 1, 2022. On May 15, YY declared and paid a cash dividend of Br 150,000. On December 31, YY reported net income of Br 270,000 for the year. (a) record acquisition of shares (a) record revenue and dividends​

Answers

(a) Record acquisition of shares: Investment in YY Ltd. Dr. Br 540,000, Cash Cr. Br 540,000.

(a) Record revenue and dividends: Dividend Receivable Dr. Br 45,000, Revenue from Investment in YY Ltd. Cr. Br 45,000; Investment in YY Ltd. Dr. Br 81,000, Revenue from Investment in YY Ltd. Cr. Br 81,000.

(a) To record the acquisition of shares by SS Ltd. on January 1, 2022:

Investment in YY Ltd. (30% of 100,000 shares * Br 18) Dr. Br 540,000

Cash Cr. Br 540,000

This journal entry records the purchase of 30% of YY Ltd.'s outstanding shares for a total cost of Br 540,000.

(b) To record revenue and dividends for the year:

On May 15, YY Ltd. declared and paid a cash dividend of Br 150,000. This dividend represents the portion of the company's earnings that will be distributed to its shareholders.

Dividend Receivable Dr. Br 45,000 (30% of Br 150,000)

Revenue from Investment in YY Ltd. Cr. Br 45,000

This entry recognizes the dividend revenue earned by SS Ltd. from its investment in YY Ltd.

On December 31, YY Ltd. reported net income of Br 270,000 for the year. As SS Ltd. has significant influence over YY Ltd., it needs to adjust its investment account for its share of the net income.

Investment in YY Ltd. Dr. Br 81,000 (30% of Br 270,000)

Revenue from Investment in YY Ltd. Cr. Br 81,000

This entry records the revenue earned by SS Ltd. from its share of YY Ltd.'s net income.

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Compensation may be offered at the individual, group, and organizational level, depending on what type of performance is to be rewarded.

a. True
b. False

Answers

Answer:

true

Explanation:

Compensation can be direct or indirect

Some of the components of compensation includes :

Base paycommissions stock optionsBonuseshealth insurance

Direct compensation are usually offered to individuals

Base pay is usually offered to the individual based on certain parameters .

Same with commissions

But there are some compensations that are offered to groups. For example if members of a department achieve a certain benchmark, they  can be rewarded with stock options

Also, indirect compensations such as health insurance and pension are usually compensation offered at the organisational level or group level

NPV Calculate the net present value ​(NPV​) for a 30​-year project with an initial investment of ​$15,000 and a cash inflow of ​$3,000 per year. Assume that the firm has an opportunity cost of ​14%. Comment on the acceptability of the project.

Answers

The net present value of the 30-year project is $6008.

The project should be accepted.

What is the NPV?

Net present value is a capital budgeting method that is used to determine the profitability of a project. Net present value is the present value of after-tax cash flows from an investment less the amount invested. Only projects with a positive net present value should be accepted.

Net present value = -3,000 + ($15,000 / 1.14) +  ($15,000 / 1.14²) + ($15,000 / 1.14³)+ ($15,000 / 1.14^4) + ($15,000 / 1.14^5) + ($15,000 / 1.14^6) + ($15,000 / 1.14^7) + ($15,000 / 1.14^8) + ($15,000 / 1.14^9) + ($15,000 / 1.14^10) + ($15,000 / 1.14^11) + ($15,000 / 1.14^12) + ($15,000 / 1.14^13) + ($15,000 / 1.14^14) + ($15,000 / 1.14^15) + ($15,000 / 1.14^16) + ($15,000 / 1.14^17) + ($15,000 / 1.14^18) + ($15,000 / 1.14^19) + ($15,000 / 1.14^20) + ($15,000 / 1.14^21) + ($15,000 / 1.14^22)  + ($15,000 / 1.14^23) + ($15,000 / 1.14^24) + ($15,000 / 1.14^25) + ($15,000 / 1.14^26) + ($15,000 / 1.14^27) + ($15,000 / 1.14^28) + ($15,000 / 1.14^29) + ($15,000 / 1.14^30)

Net present value = $6008

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Prepare an amortization schedule for a three-year loan of $114,000. The interest rate is 11 percent per year, and the loan calls for equal annual payments. How much total interest is paid over the life of the loan?

Answers

Answer:

$1254.000 loan

Explanation:

hope help keep learning

A long-term incentive is a type of
incentive given to employees that
is designed to be paid over
or longer.??

Answers

A long-term incentive is a type of incentive given to employees that is designed to be paid over an extended period or longer term. It is typically used as a way to align the interests of employees with the long-term goals of the organization. Long-term incentives are often provided in addition to regular salary or short-term incentives and are commonly used for executive-level employees or key members of the organization.

Often the life of a whistleblower involves tremendous ridicule and scrutiny from others, despite doing the "right thing." Describe your views as to why whistleblowers face tremendous obstacles as a result of bringing the inappropriate actions of otehrs to light.

Answers

Answer:

Find the explanation below.

Explanation:

Whistleblowing is the act of raising an alarm over unethical or illegal acts committed by people holding political or public service positions. The whistleblower is most times motivated by the quest to end the injustice or negative impact suffered by the disadvantaged group. Whistleblowers suffer tremendous obstacles from the people they have exposed because;

1. The offender's source of illegal income has been withdrawn. Just like humans fight for survival when their source of livelihood is taken away, so would a person fight against whatever that tends to take away their illegal source of wealth.

2. Fear of being seen in a negative light by others. The person committing a crime usually puts up an act of innocence, thus presenting himself as a morally upright person. When the whistleblower tries to expose their true identity, it is only expected that they would try to shut him up.

RECALL AN IMPORTANT CONVERSATION WITH SOMEONE THAT HAS GREAT IMPACT ON YOU UP UNTIL TODAY

Answers

One of the most important conversations for me is my future-oriented conversation.

I used to skip courses at the beginning of my college career, especially Physics. After talking with my teacher one day, I stopped skipping classes for the rest of my time in school.

My first few days at Santa Monica College in California after being accepted were quite intriguing to me since I was in a strange atmosphere with individuals I didn't know. But over time, I formed close friendships with a select handful of my classmates and began to form a group that included only us. We were not permitted to have any visitors with us. As more students skipped class, my honorable instructor and I had a discussion.

My esteemed physics instructor Mr. Immanuel Pitt and I had the talk. He was like a father figure to every college student and never reacted harshly to their transgressions. Despite being a Physics teacher, he is also a wonderful student adviser and encourages pupils to do well in their studies and achieve success in the long term. After my lesson one day, Mr. Pitt welcomed me to his room by stating it again. Even though I was aware of his reputation as a counselor, I initially did not understand why I had been invited, thus it was a remarkable occasion for me as well.

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Fickel Company has two manufacturing departments—Assembly and Testing & Packaging. The predetermined overhead rates in Assembly and Testing & Packaging are $19.00 per direct labor-hour and $15.00 per direct labor-hour, respectively. The company’s direct labor wage rate is $21.00 per hour. The following information pertains to Job N-60: Assembly Testing & Packaging Direct materials $ 375 $ 39 Direct labor $ 168 $ 84 Required: 1. What is the total manufacturing cost assigned to Job N-60? (Do not round intermediate calculations.) 2. If Job N-60 consists of 10 units, what is the unit product cost for this job?

Answers

The total manufacturing cost assigned to Job N-60 is $ 696. If Job N-60 consists of 10 units, the unit product cost for this job is $111.00.

How to find the manufacturing costs ?

Direct materials (Assembly + Testing & Packaging) = $375 + $39

= $414

Direct labor (Assembly + Testing & Packaging) = $168 + $84

= $252

Overhead applied (Assembly + Testing & Packaging) = $19 * 168 + $15 * 84 = $316 + $126

= $442

Total manufacturing cost = $414 + $252 + $442

= $1110

Unit product cost = Total manufacturing cost / Number of units

= $1110 / 10

= $111.00

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Help help help help help

Help help help help help

Answers

B..................................              

Propose your top three potential social causes for your organization and why your selected social cause or issue is a good match with your chosen corporation for creating a corporate social responsibility (CSR) campaign.

Answers

By selecting a social cause that aligns with their values and corporate goals, companies can create a CSR campaign that resonates with stakeholders and helps to build a positive reputation for their brand.

There are various social causes that companies may choose to support, depending on their corporate social responsibility goals. Here are the top three social causes that I would recommend for an organization, along with reasons why they are good matches for creating a CSR campaign:1. Environmental conservation: Protecting the environment and promoting sustainable practices is a social cause that has gained widespread attention in recent years.

As climate change continues to be a pressing issue, businesses that take a proactive approach to reducing their carbon footprint can establish themselves as responsible and sustainable entities. This is a good match for companies that have a large environmental impact, such as those in the manufacturing or transportation sectors. A CSR campaign focused on environmental conservation can include initiatives such as reducing waste, using renewable energy sources, and promoting eco-friendly practices among employees and customers.

2. Education: Investing in education is one of the most effective ways to support social development and empower individuals and communities. For companies that want to create a CSR campaign that has a tangible impact on people's lives, education is a great choice. This is especially relevant for companies that have a strong local presence and want to support the communities in which they operate. A CSR campaign focused on education can include initiatives such as donating educational resources to schools, providing scholarships to students, or organizing workshops and training programs for employees and community members.

3. Health and wellness: Promoting health and wellness is a social cause that has become increasingly relevant in light of the COVID-19 pandemic. Companies that prioritize the well-being of their employees and customers can create a positive image for themselves and build strong relationships with stakeholders. This is a good match for companies in the healthcare or hospitality sectors, as well as those that offer wellness-related products or services.

A CSR campaign focused on health and wellness can include initiatives such as promoting healthy lifestyles, providing access to healthcare services, or supporting mental health awareness and treatment programs.Overall, each of these social causes has the potential to create a meaningful and lasting impact, both for the company and the communities it serves.

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Prompt What is liability?

Answers

Answer:

The state of being responsible for something, especially by law

Mr Ashok has a company, and has an option to issue different types of preference shares. State all the types preference shares a company can issue.

Answers

A company can issue different types of preference shares. Preference shares are shares in the equity of a company that entitle the holder to a fixed dividend amount to be paid by the issuer. The types of preference shares are:
Cumulative preference shares: These are types of shares where shareholders are given the right to receive dividends for those years where dividends could not be paid due to insufficient profits.
Non-cumulative preference shares: These are types of shares where shareholders are not given the right to receive dividends for those years where dividends could not be paid due to insufficient profits.
Participating preference shares: With participating preference shares, the issuing company must pay an increased dividend to the owners of preference shares if there is a participation clause in the share agreement. This clause states that a certain portion of earnings (or of the dividends issued to the owners of common stock) will be distributed to the owners of preferences shares in the form of additional dividends.
Convertible preference shares: These are preference shares that can be converted into common stock if a shareholder wants to change its holding position. They are converted into a predetermined number of preference stocks.
Non-convertible preference shares: These are preference shares where the holder of a preference share has not been conferred the right to get their holding converted into equity share.
Redeemable preference shares: These are preference shares that can be repurchased or redeemed by the issuing company at a fixed rate and date.
In summary, a company can issue different types of preference shares, including cumulative, non-cumulative, participating, convertible, non-convertible, and redeemable preference shares.

Income tax is calculated based on:
O A. gross income.
O B. net income minus profits.
о C. net income minus deductions.
D. gross income minus deductions.

Answers

Income tax is calculated based on: C. net income minus deductions.

How is income tax calculated?

Income tax is calculated based on the net income of an individual or entity, which is the income after deducting allowable deductions from the gross income. Deductions are expenses or exemptions that are allowed by tax laws to reduce the taxable income, and they can include items such as business expenses, charitable donations, and certain personal expenses.

The net income, which is the remaining income after deductions, is then subject to the applicable tax rates according to the tax bracket of the taxpayer. Therefore, option C, "net income minus deductions," is the correct statement for how income tax is calculated.

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Consider a firm redesigning its logistics network. What are the advantages of having a small number of centrally located warehouses? What are the advantages of having a larger number of warehouses closer to the end customers?

Answers

Small centrally located warehouses offer cost efficiency and simplified inventory management, while larger warehouses closer to customers provide faster delivery, better customer service, and cost savings in shipping.

Having a small number of centrally located warehouses offers several advantages in a firm's logistics network:

Cost Efficiency: Centralized warehouses can lead to cost savings in terms of inventory management, transportation, and operational overheads. With fewer warehouses, the firm can benefit from economies of scale in procurement, storage, and distribution.

Simplified Inventory Management: Managing inventory becomes more streamlined when there are fewer warehouses. It allows for better control and visibility over stock levels, reducing the risk of stockouts or overstocking.

Faster Transit Times: With centrally located warehouses, products can be shipped more quickly to various regions since they are closer to major transportation hubs. This reduces lead times and improves overall customer satisfaction.

Improved Coordination: Centralized warehouses facilitate better coordination and synchronization of supply chain activities. It becomes easier to manage inbound and outbound logistics, optimize transportation routes, and consolidate shipments.

On the other hand, having a larger number of warehouses closer to end customers provides the following advantages:

Faster Delivery: Proximity to end customers enables faster order fulfillment and delivery. Products can reach customers more quickly, reducing transit times and improving responsiveness.

Enhanced Customer Service: Local warehouses allow for better customization and personalization of service. They can cater to specific regional preferences, offer faster response times to customer queries, and handle returns or exchanges more efficiently.

Lower Shipping Costs: By locating warehouses closer to customers, transportation costs can be reduced as products travel shorter distances. This can lead to cost savings in shipping expenses.

Flexibility and Redundancy: Having multiple warehouses distributed geographically provides redundancy and flexibility in the supply chain. It mitigates the risk of disruptions, such as natural disasters or transportation issues, as the firm can rely on alternative warehouse locations.

In summary, a small number of centrally located warehouses offer cost efficiency and streamlined inventory management, while a larger number of warehouses closer to end customers provide faster delivery, improved customer service, lower shipping costs, and increased flexibility.

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Supervisory managers are mostly concerned with which type of planning?

Answers

Answer:

Operational

Explanation:

Supervisory managers oversee things like schedules, inventory, and employee tasks. Day to day planning. These are functions of operational planning.

Explain two advantages to TGH of segmenting the market for sport shoes

Answers

Segmenting the market for sport shoes can provide several advantages to The Good House (TGH). Here are two advantages:

1. Targeted Marketing: By segmenting the market, TGH can identify specific groups of consumers with distinct needs, preferences, and behaviors related to sport shoes. This allows them to tailor their marketing efforts and product offerings to meet the specific demands of each segment. For example, they can develop different marketing messages, designs, or features for segments such as professional athletes, casual runners, or fashion-conscious individuals. This targeted approach enhances the effectiveness of marketing campaigns, leading to increased customer engagement, brand loyalty, and ultimately, higher sales.

2. Competitive Advantage: Segmenting the market can help TGH gain a competitive edge over rivals. By focusing on specific segments, TGH can better understand their unique requirements and deliver superior products and services compared to competitors who adopt a more generic approach. This can lead to enhanced customer satisfaction and loyalty within those segments. Additionally, TGH can identify niche or underserved segments within the sport shoe market and develop specialized products to cater to their needs. By catering to these niche segments, TGH can differentiate itself from competitors and establish a strong position in the market.

Overall, market segmentation allows TGH to optimize their marketing efforts, cater to diverse consumer needs, and gain a competitive advantage by focusing on specific market segments.

What is the difference between an economic want and a noneconomic want?

Answers

Answer:

The right one

Explanation:

The right one

T/F: All else equal, the price of a discount bond will decline over time as it approaches maturity

Answers

The given statement "All else equal, the price of a discount bond will decline over time as it approaches maturity" is True because price of a discount bond will decline over time as it approaches maturity because the market expects the bond to be repaid at par at its maturity date.

As the maturity date gets closer, the market expects the bond to be repaid at par, which means that the amount of discount on the bond will decrease. The decrease in the discount on the bond leads to a decrease in its price.

This is further compounded by the fact that the bond will no longer offer any interest payments due to the fact that it is close to maturity. As such, the price of the bond will decrease over time as the maturity date approaches.

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Malcolm Phillips is a sole trader who prepares his accounts annually to 30 April. His summarised balance sheets for the last two years are shown below.
Balance Sheets as at 31 April
20X8 20X9
££ £££ £
Fixed assets 15,500 18,500
Less Provision for depreciation ( 1,500) ( 1,700)
14,000 16,800
Current assets
Stocks 3,100 5,900
Trade debtors 3,900 3,400
Bank 1,500 –
8,500 9,300
Current liabilities
Trade creditors 2,000 2,200
Bank overdraft – 900
(2,000) (3,100)
6,500 6,200
20,500 23,000
Represented by
Capital account:
Balance at 1 May 20,000 20,500
Add Net profit for the year 7,000 8,500
Additional capital introduced – 2,000
27,000 31,000
Less Drawings ( 6,500) ( 8,000)
20,500 23,000
Malcolm is surprised to see that he now has an overdraft, in spite of making a profit and bringing
in additional capital during the year.
Questions:
(a) Draw up a suitable financial statement which will explain to Malcolm how his overdraft has
arisen.
(b) The following further information relates to the year ended 30 April 20X9.
£
Sales (all on credit) 30,000
Cost of sales 22,500
Calculate Malcolm’s
(i) gross profit margin
(ii) rate of stock turnover

Answers

a. Malcolm's gross profit margin is 25%.

b. Malcolm's rate of stock turnover is 5 times.

To calculate Malcolm's gross profit margin and rate of stock turnover:

(i) Gross Profit Margin:

Gross Profit = Sales - Cost of Sales

Gross Profit = £30,000 - £22,500 = £7,500

Gross Profit Margin = (Gross Profit / Sales) * 100

Gross Profit Margin = (£7,500 / £30,000) * 100 = 25%

Malcolm's gross profit margin is 25%.

(ii) Rate of Stock Turnover:

Stock Turnover = Cost of Sales / Average Stock

Average Stock = (Opening Stock + Closing Stock) / 2

Average Stock = (£3,100 + £5,900) / 2 = £4,500

Stock Turnover = £22,500 / £4,500 = 5 times

Malcolm's rate of stock turnover is 5 times.

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In the Keynesian cross model, assume that the consumption function is given by C=200+0.75*(Y-T) Planned investment is 100; government purchases and taxes are both 100.

a) Graph planned expenditure as a function of income. You should be able to have specific Numbers for your intercepts since you are given specific functional forms)

b) What is the equilibrium level of income?

c) If government purchases increase to 125, what is the new equilibrium income? What is the multiplier for government purchases?

d) What level of government purchases is needed to achieve an income of 1,600? (taxes remain at 100.)

(Hint : an income increase to 1,600 represents an increase of "..." over the original value of income. Use the government purchases multiplier formula and this "..." increase to calculate by how much must government purchases change to get this "..." increase in income)​

Answers

Answer:

Explanation:

a) To graph planned expenditure as a function of income, we need to use the Keynesian cross model. In this model, the planned expenditure (E) is equal to the sum of consumption (C) and planned investment (I), and is represented by the equation E = C + I. Given the consumption function C = 200 + 0.75*(Y - T) with T = 100 and I = 100, we can write the planned expenditure function as follows:

E = C + I

E = (200 + 0.75*(Y - 100)) + 100

E = 300 + 0.75Y - 75

E = 225 + 0.75Y

To graph this function, we plot E on the vertical axis and Y on the horizontal axis. The intercept on the vertical axis is 225, and the slope of the line is 0.75. The graph is a line that starts at the point (0, 225) and has a slope of 0.75.

b) To find the equilibrium level of income, we need to set planned expenditure equal to actual expenditure, which is equal to income (Y) in the Keynesian cross model. Thus, we have:

Y = E

Y = 225 + 0.75*Y

Solving for Y, we get:

Y = 900

Therefore, the equilibrium level of income is 900.

c) If government purchases increase to 125, the new planned expenditure function becomes:

E = C + I + G

E = (200 + 0.75*(Y - 100)) + 100 + 125

E = 425 + 0.75*Y

To find the new equilibrium income, we set planned expenditure equal to income (Y) again:

Y = E

Y = 425 + 0.75*Y

Solving for Y, we get:

Y = 1,300

Therefore, the new equilibrium income is 1,300. The multiplier for government purchases is given by:

Multiplier = 1/(1 - MPC)

where MPC is the marginal propensity to consume. In this case, MPC = 0.75, so the multiplier is:

Multiplier = 1/(1 - 0.75) = 4

d) To find the level of government purchases needed to achieve an income of 1,600, we need to use the government purchases multiplier formula:

Change in Y = Multiplier * Change in G

The "..." increase in income is 1,600 - 900 = 700. We want to know by how much government purchases must change to get this increase in income. We can rearrange the formula to solve for the change in government purchases:

Change in G = Change in Y / Multiplier

Change in G = 700 / 4

Change in G = 175

Therefore, the level of government purchases needed to achieve an income of 1,600 is 100 + 175 = 275. Taxes remain at 100 in this case.

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