When the price of a good increases, it undoubtedly hurts individual consumers, since they now have to pay more for a particular good. however, there are some cases in which a price increase can actually serve the public interest.

which of the following is an example of a price increase that serves the public interest? check all that apply.

(a) a monopolist sets its price above that which would occur in a perfectly competitive market.
(b) the price for a hunting license is increased in an effort to reduce the number of hunters.
(c) a law is passed increasing the price of cigarettes in an effort to decrease secondhand smoke.

The simple interest in a loan of $200 at 10 percent interest per year is

Fanning company is considering the addition of a new product to its cosmetics line. the company has three distinctly different options: a skin cream, a bath oil, or a hair coloring gel. relevant information and budgeted annual income statements for each of the products follow. skin cream bath oil color gel budgeted sales in units (a) 110,000 190,000 70,000 expected sales price (b) $8 $4 $11 variable costs per unit (c) $2 $2 $7 income statements sales revenue (a × b) $880,000 $760,000 $770,000 variable costs (a × c) (220,000) (380,000) (490,000) contribution margin 660,000 380,000 280,000 fixed costs (432,000) (240,000) (76,000) net income $228,000 $140,000 $204,000 required: (a) determine the margin of safety as a percentage for each product. (b) prepare revised income statements for each product, assuming a 20 percent increase in the budgeted sales volume. (c) for each product, determine the percentage change in net income that results from the 20 percent increase in sales. (d) assuming that management is pessimistic and risk averse, which product should the company add to its cosmetics line? (e) assuming that management is optimistic and risk aggressive, which product should the company add to its cosmetics line?

Contrast two economies that transitioned to capitalism and explain what factors affected the ease kf their transition as welas the “face” of capitalism that each has adopted