Answer:
Explanation:
To remain competitive in providing premium healthcare services amid increasing competition, pharmacies must recognize and respond to certain changes likely to influence their market. Look for the following key trends that will define the market over the coming year and beyond.
These trends are classified as consumer-related and industry trends and are not new. They have emerged over a long period and will continue for the foreseeable future.
Consumer-related trends:
Rising expectations
Ageing population
Increase in chronic diseases
Consumerization-Consumers increasingly want to be involved in making decisions about their healthcare.
what u should do:
Engage and empower consumers. Educate them, provide information, coach them, and give patients choices and control.
Adoption/use of technology-Consumers of all ages increasingly uses technology in their daily lives.
Industry trends:
Reimbursement/margins
Consolidation
Preferred networks
Speciality drugs
Labour market
Staying competitive in today’s market requires understanding the major trends shaping the industry. Understanding these trends then means developing clinical, financial and marketing strategies to stay ahead of the curve and to differentiate your pharmacy.
adding
environmental trends
the pharmaceutical industry has begun to notice the detrimental impact pharma products have on the environment on a global scale.
Pharmaceutical products enter the environment at various stages of their life cycle, particularly during the production phase. One of the main threats is that discharging antibiotics into the environment can promote the natural development of antibiotic-resistant pathogens that are harder to treat.pharma pollution more directly and seriously affects those living near production plants whose water and food sources are contaminated with waste pharma products.The pollution of pharma products into the environment also adversely affects animals, particularly fish living in contaminated water. For example, a report published in the science journal Nature in 2009 noted that ‘many of Europe’s rivers are home to male fish that are ‘intersex’ and so display female sexual characteristics, including female reproductive anatomy. Some males also produce vitellogenin, a protein normally found in eggs that can be induced in males by hormone exposure’.social trends
There is an immediate need for pharmaceutical companies to regard the social environment as the key strategic issue in long-range planning due to the pervasiveness of social influence. Through perceptions of need, society can influence resource allocation and exercise public control over most facets of innovation, production, distribution and marketing of drugs and the funds available by controlling prices and profits. Unfortunately, a recent attitude study on the future of the multinational pharmaceutical industry indicates that a low level of impact is accorded to the Social Environment.The Social Environment of the future can only be evaluated successfully by utilizing effective social forecasting techniques.Unless the Social Environment is regarded as the central strategy issue and effective social forecasting techniques are adopted there is a very real danger that a socially and economically valuable industry will be progressively less able to meet its commitment to contribute effectively to the future well-being of society.xyz company sold merchandise for $5,000, with payment terms of 2/10,n/30. if the customer pays within the discount period and takes the discount, xyz will receive . multiple choice question. $3,500 $4,900 $5,000 $100
If the customer pays within the discount period and takes the discount, xyz will receive $4,900.
The customer can take a 2% discount and pay 4900 (=5000 - (2% x 5000)) xyz company sold merchandise for $5,000, with payment terms of 2/10,n/30. if the customer pays within the discount period and takes the discount, xyz will receive $4,900. The payment term is mentioned accordingly customer will receive discount.
The discount period which is allotted is matter a lot while receiving the discount because it was allotted for that period only.
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what are the advantages of unionization? check all that apply. unions can help employees increase their job tenure, performance, and earnings. unions give employees the opportunity to give feedback to management. unions can help organizations allocate resources more effectively. unions provide a balance for the power of managers.
The advantages of unionization are unions can help employees increase their job tenure, performance, and earnings. Unions give employees the opportunity to give feedback to management.
Union members work together to barter and enforce a contract with the control that ensures the stuff you care about like first-rate raises, lower-priced fitness care, job protection, and a strong timetable. higher workplaces and operating conditions without the fear of retaliation.
The main reason for labor unions is to provide workers the power to negotiate for extra favorable running conditions and other advantages through collective bargaining.
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international strategy refers to a(n): a. action plan pursued by american companies to compete against foreign companies operating in the united states. b. political and economic action plan developed by businesses and governments to cope with global competition. c. strategy through which the firm sells its goods or services outside its domestic market.
International strategy refers to a political and economic action plan developed by businesses and governments to cope with global competition.
An international strategy is usually the first approach most companies take when expanding globally. That is, exporting or importing goods and services while maintaining a head office or branch in the home country. There is no one-size-fits-all approach to global expansion as a company.
Cross-border strategies are the best, but also the most complex in terms of relationships and communication. Visualizing four different international strategic models helps to understand the relationship between branch offices and headquarters.
Strategy is the action a manager takes to help him achieve one or more organizational goals. Strategy can also be defined as "the general direction along which an organization and its various components will achieve the desired future state". Strategy is born out of a detailed strategic planning process. "
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when project managers analyze tasks involved in completing a project, estimate time needed for each task, and estimate the minimum time needed to complete the project, they are applying what tool to operations management?
Project managers use PERT for operations management when they examine the tasks involved in finishing a project, estimate the time needed for each work, and determine the minimal time needed to finish the project.
PERT stands for program evaluation and review technique. What do you mean by that?PERT, also known as the Program Evaluation Review Technique, is a visual tool for project planning. The method makes it easier for project planners to determine start and finish dates as well as interim tasks and deadlines.
What is the purpose of the PERT method?A graphical representation of a project's timetable, known as a program evaluation review technique (PERT) chart, lists each individual activity required to complete the project. Because it shows job dependencies, the PERT chart is frequently preferred to the Gantt chart as a project management tool.
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joey, age 49, who is single, is not covered by another qualified retirement plan and earns $131,000 (agi is $131,000) in 2022. how much can he contribute to a traditional ira in 2022?
Based on the fact that Joey is single and is not covered by another qualified retirement plan, as well as his earnings, the amount he can contribute to a traditional IRA in 2022 is $5, 200.
How to find the amount to contribute?The formula for the amount that a single person can contribute to their traditional IRA according to tax laws in 2022 is:
= Traditional IRA limit for 2022 single fliers x (144, 000 - Annual earnings) / ( 144, 000 - 129, 000)
The Traditional IRA limit for 2022 single fliers is $6, 000.
This means that the amount that Joey can contribute to a traditional IRA in 2022 is:
= 6, 000 x (144, 000 - 131, 000) / (144, 000 - 129, 000)
= $5, 200
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what includes all activities related to internal and external business operations such as servicing customer accounts, collaborating with partners, and exchanging real-time information?
E-business includes all activities related to the internal and external operations of a business, such as exchanging real-time information, servicing customer accounts, and collaborating with partners.
E-business OR electronic business refers to any process that a business enterprise conducts over the web. Business enterprises include any governmental, for-profit, or nonprofit entity. E-business synchronizes all the activities of the supply chain to make the business operations more efficient and improve customer experience with reduced cost and faster response.
E-business is not a technology business itself but it is a business of any nature that uses new technologies in order to boost management processes. A few examples of e-business are auction sites, software developer sites, online ticket reservation sites, etc.
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gloria will be managing a brand-new call center. her employees are all new to the company, and she will be conducting their initial training. what should gloria keep in mind as she prepares this training presentation?
The thing that Gloria should keep in mind as she prepares this training presentation when conducting their initial training is that She should be careful to define specialized terms or concepts.
What is training presentation?The training presentation can be described as the training program that can be used by the company to teach new people about how to carry task that is needed by them in the organization , in the presentation class, different software can be used such as the power point by the Microsoft.
It should be noted that this is the presentation that is been used by Gloria when he was trying to set up her company and to teach the new employees about the process to be followed in caring out their daily activities in the organization.
In conclusion, she should be able to make sure she define specialized terms or concepts so that the employees can have the better understanding of what she is trying to pass across to them during the presentation program.
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which of the following is an example of human capital? a. the amount you get paid each week to work at the library b. the things you have learned this semester c. the comfortable chair in your dorm room where you read economics texts d. any capital goods that require a human to be present to operate
The example of human capital is any capital goods that require a human to be present to operate as human being is required for the functioning of the machinery .
What is human capital?
Social scientists use the idea of human capital to refer to character traits that are seen advantageous in the manufacturing process. It includes education, excellent health, knowledge, and skills of the workforce. Earnings of any individual are significantly influenced by human capital.
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darcy is leading the bcp effort for her organization and is currently in the project scope and planning phase. what should she expect will be the major resource consumed by the bcp process during this phase?
Amid the arranging stage, the foremost noteworthy asset utilization will be the time committed by individuals of the BCP group to the arranging handle itself.
What is the scope of BCP commerce progression arrange )?
BCP scope: The hardware, gadgets, supplies and staff who are influenced by the laid out crises, as well as which staff individuals or groups utilize these assets most. BCP spaces: The commerce basic chance zones, or divisions, whose parts and obligations will adjust beneath the trade coherence approach scope.
Commerce Affect Investigation (BIA) The primary step to building your company's BCP is to consider the potential affect of each sort of catastrophe or hazard occasion that your company may confront.
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aaa co. sold merchandise to health co. on account, $18,000, terms 2/15, net 45. the cost of the merchandise sold is $15,500. aaa co. issued a credit memo for $1,750 for merchandise returned that originally cost $1,400. the health co. paid the invoice within the discount period. what is amount of net sales from the above transactions for aaa co.?
$15,925 is the number of net sales fro. m the above transactions for aaa co. Thus, option C is correct.
What are net sales?Net sales can be defined as the total about of sales that are being done by the company. It is the sales that have been acquired trump credit as well as cash or bank transactions.
The gross sale is $18,000
the sales return of the health company is $1750
Sales return = (gross sale - Sales returns) term%
= (18000-1750) * 2/100
=325
Amount of net sales = Gross sales - (sales return + sales discount)
= 18000-(1750+325)
= $15925
Therefore, option C is the correct option.
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The question is incomplete, the complete question is:
a.$16,250
b.$14,100
c.$15,925
d.$13,818
sarah reports to work and clocks in at 8:00 a.m. each morning and leaves at approximately 4:30 p.m. all of her tools and supplies are supplied by the company where she is working. her supervisor directs and controls the tasks she performs on various projects. sarah is most likely considered a(n)
As Sarah reports to work and clocks in at 8:00 a.m. each morning and leaves at approximately 4:30 p.m she is most likely considered as an employee of the company.
An employee can be described as a person who works for an organization. An employee usually has a fixed working time just like Sarah has.
The supplies that are used for work are given by the company which is also the case for Sarah.
Each employee in an organization works under a supervisor who is answerable to the CEO. Sarah also has a supervisor who directs ad assigns her tasks.
Hence, based on these characteristics, Sarah will be considered as an employee.
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venus sportswear corporation has preferred stock outstanding that pays a quarterly dividend of $2. it has a price of $100. what is the required rate of return on the preferred stock?
8% is the required rate of return on the preferred stock. Divide next year's fixed dividend payment by the current stock value, and then add the result to the dividend's measured growth.
What is rate of return ?The required rate of return, in general, refers to how much profit a company must have in order to pursue and complete a project or investment. This figure can include anything from machinery costs to the cost of a merger. In addition to risk and the overall health of the market, the required rate of return is calculated.
The required rate of return (RRR) is the minimum return an investor will accept for owning a company's stock in exchange for a certain level of risk. In corporate finance, the RRR is used to assess the profitability of potential investment projects.
The dividend-discount model computes the RRR for equity of a dividend-paying stock using the current stock price, dividend payment per share, and dividend growth rate forecast.
RRR = (Expected dividend payment / Share Price) + Forecasted dividend growth rate
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what two product factors affect production location decisions? question 3 options: a) cost to manufacture the product and the distribution requirements b) degree of customization required and economies of scale c) worker availability and prevailing wages in that country d) value-to-weight ratio and serving the same universal needs
Value-to-weight ratio and serving the same universal needs are factors affect production location decisions.
A product's value to weight ratio serves as a gauge for how much money it is worth per kilogram or pound. This is a crucial metric used in supply chain strategy and design. One of the most crucial elements, along with inventory holding expenses, is how a product will be delivered to its market and customers. It may also have an impact on the design, manufacture, and storage of products.
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buying stock with a market order you would like to buy shares of ralph lauren (rl). the current bid and ask quotes are $85.13 and $85.20, respectively. you place a market buy-order for 500 shares that executes at these quoted prices. how much money did it cost to buy these shares? multiple choice $42,600 $35 $42,565 $85,165
Investors that trade funds for these units to reflect equity ownership in a company or financial asset are the owners of shares. Voting rights and potential profits from price growth and dividends are made possible by common shares.
Explain about the shares in market ?Shares are fractional ownership interests in a corporation. For some businesses, shares are a type of financial instrument that allows for the equitable distribution of any declared residual profits in the form of dividends. A stock with no dividend payments does not distribute its income to its shareholders.
The smallest unit of stock in a firm is called a share. Therefore, shares is the proper noun to use when assigning stock and referring to certain characteristics. Technically speaking, shares are equivalent to stock units. Several classifications of a company's shares are referred to as "common" and "preferred" shares.
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the tinsley company exchanged land that it had been holding for future plant expansion for a more suitable parcel located farther from residential areas. tinsley carried the land at its original cost of $62,500. according to an independent appraisal, the land currently is worth $150,000. tinsley paid $23,000 in cash to complete the transaction. required: what is the fair value of the new parcel of land received by tinsley assuming the exchange has commercial substance? prepare the journal entry to record the exchange assuming the exchange has commercial substance. prepare the journal entry to record the exchange assuming the exchange lacks commercial substance. prepare the journal entry to record the exchange except that tinsley received $30,000 in the exchange, and the exchange lacks commercial substance.
1. Fair Value of the new land= Fair Value of old land + Cash given
= $150,000 + $23,000
= $173,000
2. Journal Entry for the Transaction-
Dr Land - new $173,000
($150,000 + $23,000)
Cr Cash $23,000
Cr Land - old (book value) $62,000
Cr Gain $88,000
($150,000 - $62,000)
3. Dr Land - new $44,000
($62,500 + $23,000)
Cr Cash $23,000
Land - old (book value)$62,500
what is a Journal Entry?
Journal entry is a process which is done in order to document a business transaction in the accounting records of the company. A journal entry is often made in the general ledger, but it can also be made in a subsidiary ledger and subsequently rolled forward into the general ledger after being summarized. After then, the general ledger is utilized to produce the company's financial statements.
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What is telecommuting?
Answer:
Telecommuting is the practice of working from home using the internet, by including email, and using the telephone.
Explanation:
Answer: Telecommuting is the practice of working from home using the internet, by including email, and using the telephone.
Explanation: Its right for 4515Vs2 - Business Leadership -2019
july 1 beginning inventory 30 units at $60 5 purchases 180 units at $56 14 sale 120 units 21 purchases 90 units at $58 30 sale 84 units assuming that a perpetual inventory system is used, what is ending inventory (rounded) under the average-cost method for july?
$5508 is ending inventory (rounded) under the average-cost method for July. The cost of goods sold is the amount of sales that the company incurred as a result of the sold products.
The cost of goods sold is the amount of sales that the company incurred as a result of the sold products. This is used to calculate gross profit, which is calculated as sales minus cost of goods sold.
The average cost method determines the cost of inventory items by dividing the total cost of goods purchased or produced in a period by the total number of items purchased or produced. The weighted-average method is another name for the average cost method.
$5508 is ending inventory (rounded) under the average-cost method for July.
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according to the tannenbaum and schmidt model of situational leadership, what are the factors managers should consider before deciding how to lead? (choose every correct answer.)
The relationship between a manager's level of power and the degree of flexibility they decide to give their workforce is depicted by the Tannenbaum and Schmidt continuum. As the team's flexibility increases, the manager's authority should decrease.
Robert Tannenbaum and Warren Schmidt, contingency theorists, claimed that leadership behavior varies along a continuum and that the level of follower involvement and participation in decision-making grows as leaders move away from the authoritarian extreme (1958, 1973).
Taylor and Schmidt The manager's amount of power and the degree of flexibility they grant their staff are correlated, as shown by the continuum model.
According to the follower, the situational leadership model tackles four different leadership philosophies: selling, telling, and influencing.
Participating.
Delegating.
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suppose you are applying for a mortgage loan. the loan officer tells you that if you get the loan, the bank will keep the house title until you pay back the loan. which problem of asymmetric information is the bank trying to solve?
The bank and other financial institutions mortgage the property to cover the potential default risk in order to be on the safe side and reclaim the loan funds.
While every bank makes efforts in providing house loans. They run the danger of having defaulters because they are lending institutions. Since the financed amount is too high for the banks to lend to any one person, if a customer defaults or becomes an NPA, the bank will lose the money it had given to that specific consumer.So, in order to be on the safe side and to offset the losses associated with failure, the bank has mortgaged the property on which they are providing money. Once the debt is paid off, they do disclose the original property documents.
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craigmont company's direct materials costs are $4,700,000, its direct labor costs total $8,530,000, and its factory overhead costs total $6,530,000. its conversion costs total:
Conversion costs total is$ 6,70,0000. conversion costs total is substract Prime cost and overhead costs total is equal.The primary costs associated with running a plant are labor and raw material costs. Because these are the essential components of production, they are referred to be prime.
How to find conversion costs total ?The primary costs associated with running a plant are labor and raw material costs.
Prime cost = material cost + labour cost is equal to
$4,700,000 +$8,530,000 = 13,230,000
conversion costs total is substract Prime cost and overhead costs total is equal.
conversion costs total is Prime cost - overhead costs total is equal
13,230,000 - 6,530,000 = $ 6,70,0000.
Simply summing up all direct labor costs and manufacturing overhead costs yields conversion costs. The labor costs that can be directly linked to a product are known as direct labor costs.
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las vegas gold corporation reported net sales of $650,000, $720,000, and $780,000 in the years 2019, 2020, and 2021, respectively. if 2019 is the base year, what percentage do 2021 sales represent of the base?
A method for evaluating a series of financial statement data over time is horizontal analysis, also known as trend analysis.
The ability of a company to meet its short-term debt obligations can be assessed using a liquidity ratio. The current ratio, quick ratio, and cash ratio are the three primary liquidity ratios.
The most common methods for analyzing financial statements are circular, horizontal, and vertical analyses. Using horizontal analysis, a financial statement item in the current year can be compared to other items in the same year.
What are shareholders most concerned about?
Long-term creditors and stockholders, on the other hand, are primarily concerned with the company's profitability and solvency.
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what is the value of company x stock if the dividend next year will be $3 and is expected to grow at a rate of 4% forever if your required return is 10.42%
The value of company x stock is USD 46.73
How do stocks work?A sort of security known as a stock represents a small portion of ownership in a company. When you purchase shares of a firm, you gain a fractional ownership stake in it. Investors invest in shares they believe will go up in value. In a case like this, company's shares value also rises. After then, the stock can be sold at a gain.
Nasdaq or the New York Stock Exchange are stock market exchange where publicly traded corporations sell their stock.
Stock investment helps the investors to grow their money over a period of time and also outpace inflation.
Shares can be purchased and sold by investors through stockbrokers. The supply as well as demand of every company's shares are looked by the stock exchanges directly impacting the price of the stock.
To solve the question :
D= 3
g= 4
r= 10.42
3/(.1042-.04)= 46.73
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whole grain bakery purchases an industrial bread machine for $29,000. in addition to the purchase price, the company makes the following expenditures: freight, $1,900; installation, $3,800; testing, $1,400; and property tax on the machine for the first year, $580. what is the initial cost of the bread machine?
The initial cost of the bread machine for a whole grain bakery is $36680
Purchase price of the machinery = $29000
The total cost of ownership, or TCO, is the overall cost of purchasing a piece of equipment. This cost includes all related expenses. For instance, factors like labour, materials, and parts all have an impact on the final price you'll pay. A machine that is more economical initially but ends up costing more in the long run.
Freight charges = $1900
Installation charges = $3800
Testing charges = $1400
Property tax on the machine for the first year = $580
Total cost of the machinery = Purchase price + Freight charges + Installation charges + Testing charges + Property tax
= 29000 + 1900 + 3800 + 1400 + 580 = $36680
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related diversification strategies are strong when built upon sharing multiple choice competitively valuable resources. generalized resources and capabilities. general management capabilities. human resource management capabilities. resources that have a broad utility and application outside a diversified company's core industry.
Related diversification strategies are strong when built upon sharing competitively valuable resources.
Diversification is a business strategy for entering new markets that include new products or product lines, new services, or entirely different skills, techniques, or knowledge.
A diversification strategy is used when a company wants to grow. This is the practice of introducing new products into the supply chain to increase profits. These products can become new segments of the industry the company is already in, known as business-level diversification.
Related diversification occurs when a company enters a new industry that shares important similarities with an existing industry (Figure 8.1). Film and television are both aspects of entertainment, so Disney's acquisition of ABC is an example of a related diversification.
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which of the following types of markets is more efficient (greater overall gains from trade): a) a monopolist who does not price discriminate and has to charge a uniform price b) first-degree price discrimination
First-degree price discrimination markets are more efficient.
What is First-degree price discrimination?Price discrimination is categorized into three types: perfect price discrimination, second-degree price discrimination, and third-degree price discrimination. These price discrimination tiers are also known as personalized pricing (first-degree pricing), product versioning or menu pricing (second-degree pricing), and group pricing (third-degree pricing) (3rd-degree pricing).
First-degree discrimination occurs when a company charges the greatest possible price for each unit consumed. Because prices vary among units, the corporation keeps all available consumer surplus or economic excess for itself. Many sectors that provide client services engage in first-degree price discrimination, which occurs when a business charges a different price for each product or service given.
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bill buyer and sam seller have a contract with an inspection objection deadline of may 1. bill undertakes inspections and notifies sam on the morning of may 2 that he objects to a hole in the roof and asks sam to repair it. sam refuses to fix it. what are the parties' rights? the contract has a liquidated damages provision.
Bill may cancel the agreement, but he will forfeit the earnest money deposit. a clause in a contract that requires a party in breach to compensate the other party with a predetermined sum of money in exchange for the breaching party's failure to carry out a certain job or adhere to a specific duty or obligation.
What sort of damage is considered liquidated?When a person or bank lends money in the form of a loan and the allotted period for payback expires before the payment is finished, that is an example of liquidated damages. According to the terms of the contract, the party who is in default must make up for this harm.
What is a liquidated losses provision, and under what circumstances might it be void?The liquidated damages provision aids in compensating parties for anticipated contract breaches. It compensation payment is too large in relation to market value, it is no longer enforceable.
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a 5.75 percent coupon bond with 12 years left to maturity is offered for sale at $978.83. what yield to maturity is the bond offering? (assume interest payments are paid semiannually and par value is $1,000.) multiple choice 3.00 percent 3.09 percent 5.75 percent 6.00 percent
The bond offering yields 6.00 percent to maturity.
The typical number of conversions per ad interaction is shown as a percentage. The conversion rate may be calculated by simply dividing the number of conversions by the total number of ad interactions that can be connected to a conversion during the same time frame.
The perforated portion of the statement at the bottom that you mail in with your payment is known as the payment coupon.
Present Value or Price of the bond, PV = $978.83
Total number of coupon periods, N = 12 x 2 = 24
Coupon Payment, PMT = FV x 5.75 ÷ 2
= -$28.75
CPT > I/Y = Rate or Yield (semiannual)
= 3.00
Convert Rate in annual and in % form = Yield x 2 ÷ 100
= 6.00%
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true or false: cumulative voting means board members are elected one at a time, with each shareholder casting his or her allotted votes for each seat on the board. true false question. true false
Cumulative voting means board members are elected one at a time with each shareholder casting his or her allotted votes for each seat on the board is false.
what is cumulative voting?
Companies use cumulative voting, also known as accumulation voting or weighted voting, a multi-voting system to ensure that shareholders are represented more fairly.Each shareholder has the right to one vote per share in cumulative voting, which is calculated by multiplying that number by the number of open director positions. The votes can be distributed in any way the shareholder chooses.
To give minority shareholders more power over how the board of directors election goes, cumulative voting is used.A shareholder can give all of their votes to a single candidate under cumulative voting.
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you own a beverage company and have a few different types of beverages on the market. one of the diet sodas isn't doing as well as your other sodas and you want to see what you can do to increase your sales. after conducting some research, you see that 80% of your total potential market (100%) is aware of your product. furthermore, 75% have adequate knowledge about your product and 65% say they like the product. half say they intend to buy the product and 45% of the market actually buy it. what aspect of the hierarchy of effects should be the promotional objective?
The goal of promotional campaigns should be to increase the number of people who plan to purchase.
What are the promotional objectives? What are a few examples of promotional objectives?Promotional Goals are a component of a comprehensive marketing plan. The initial stage of a marketing campaign is developing a brand identity with visuals and phrases. This is followed by expanded messaging sent either directly through personal email marketing communications or through social media.
Making items and services more in demand. A retailer might do this by advertising a sale in order to increase foot traffic.
Why is it vital to have a promotional goal?Advertising and other marketing communications have goals known as promotional objectives. Marketing plan must include market promotion. Today's marketers frequently employ this potent tool to attain their marketing objectives in a cutthroat market.
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the equilibrium price in this market is $2.50 and the equilibrium quantity is 25 units. if the government imposes a tax of $3 in this market, only 10 units will be sold, and the deadweight loss will equal:
The deadweight loss will be equal to $37.5, considering the equilibrium price and equilibrium quantity.
Given,
Equilibrium price = $2.50
Equilibrium quantity = 25 units
Tax imposed by government = $3
No. of units sold = 10
No of units remained unsold = 25-10 = 15
Deadweight loss = $15*$2.50 =$37.5
When market supply and demand are in harmony, prices become steady. This is known as price equilibrium. In general, a surplus of products or services results in lower prices which increases demand, while a shortfall or insufficient supply drives up prices, which diminishes demand.
A state of equilibrium is generated by the action of supply and demand balancing one another.
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