The Following Question Are Based on the Following Diagram

question 58

Multiple Choice

The following question are based on the following diagram:

-Suppose a sales tax on the commodity is imposed where S and D are the market supply and demand curves before the tax was levied.The equilibrium price with the tax is

• A) $6.
• B) $6.40.
• C) $7.
• D) $7.40.
• E) somewhere between $6.40 and $7.

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Definitions:

Schedule of Cash Receipts

A detailed plan or report of the expected times and amounts of incoming cash to the business.

Gross Profit Rate

The ratio of gross profit to net sales, showing the percentage of revenue that exceeds the cost of goods sold.

Inventory

Materials and goods on hand that a business plans to sell in the regular course of operations, representing a current asset on the balance sheet.

Budgeted Purchases

The planned or forecasted amount of goods a company intends to buy over a specific period, often part of the budgeting process.