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Blackstone,Inc.,features over a dozen models of tires in many different sizes.Two of the models of tires are Deluxe and Regular.Tire size LX14 is available in both models.The following information was obtained:
The selling prices include installation costs.Each Deluxe tire costs $6 to mount and balance; each Regular tire costs $5 to mount and balance.
a. Compute the unit selling price for the tire only for both single tires and sets of four for each alternative.
b. Was cost the major consideration supporting these prices?
c. What other factors could have influenced these prices?
Tax
An inescapable financial demand or another sort of fee imposed on a taxpayer by an arm of the government to fulfill government spending requisites and diverse expenditures for public services.
Good
An item or product that can be bought, sold, or provided in an exchange and is intended to satisfy a want or need.
Burden
In economic contexts, it often refers to the impact of taxes or regulations on individual or corporate finances.
Tax
Mandatory financial contributions imposed by governments on individuals, businesses, or transactions to finance government activities.
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