Using the midpoint method, the price elasticity of demand is determined to be about 0.67. What change in the price would cause a 12% increase in the quantity demanded

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Answer 1

Using the midpoint technique, the price elasticity of demand is estimated to be around 0.67, implying that a 17.9% fall in price would result in a 12% increase in the quantity requested.

What is the price elasticity of demand?

The price elasticity of demand is the ratio of a product's percentage change in quantity demanded to its percentage change in price. It is used by economists to understand how supply and demand fluctuate as the price of a product varies.

Knowing the price elasticity of demand for a product allows someone selling that product to make more informed pricing selections. This metric tells retailers about their clients' pricing sensitivity. It is also essential for manufacturers to design production plans and for governments to decide how to tax goods.

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Related Questions

The U.S. dollar is valued at 0.94 euros. If arbitrage occurs, what will happen to the value of the dollar

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The U.S. dollar is valued at 0.94 euros. If arbitrage occurs It will increase value of the dollar

The dollar rate can be thought of as the ratio of foreign currencies to the U.S. dollar, or how many units of a given currency are required to buy one dollar. For instance, if the exchange rate between the dollar and the Canadian dollar is 1.25, 1.25 Canadian dollars must be used to purchase one US dollar. The U.S. dollar (USD) is one of the most valuable currencies in the world and is used as a reliable base to trade with most other currencies. In terms of the size of the global market, the euro is the only competitor that comes close to the USD. Having said that, the euro to dollar exchange rate has been erratic over the previous few years.

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Should the United States increase their top tax rate by taxing individuals 90% on all income they earn ABOVE $500,000

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Answer:

Individuals who earn ~$500,000 and above 40% of all income taxes, and pay 59.1% of all taxes shared. In a common sense, the amount paid should be proportional to not only the amount they earn, but also the amount of people within that tax bracket. In essence, the United States should not increase the top tax rate to 90%, as it is an extremely unfair tax to individuals, just because they are "richer". Also, a hike in taxes to the rich would negatively affect everybody else as well. Many rich people own successful businesses that employ hundreds, if not thousands of middle class and lower class workers. An increase in taxes can lead to lower pays, stagnant job growth or even shrinking, as well as higher costs of products and services to help make up for the amount loss to taxes. The United States government do not need the extra funds if they themselves push for agendas that are not beneficial to the ordinary American, and therefore, they do not have the justification to raise the tax rate.

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What according to you are the 3 most important characteristics needed for a strong team?

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Important characteristics needed for a strong team are  Communication,  Cooperation and  Adaptability.

1. Communication: Having strong communication within a team is essential to ensure team members can work together effectively and understand what needs to be done. Clear communication is necessary for the team to share ideas, agree on objectives, and coordinate their tasks.

2. Cooperation: Cooperation is essential for any team to succeed. Effective teamwork requires members to trust and support each other, respect each other’s opinions, and work together to achieve a common goal.

3. Adaptability: Teams need to be able to adapt to changing circumstances and manage their tasks accordingly. This means being able to adjust to different situations and evolving strategies in order to remain successful.

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Why are there more mixed economies in the world today?

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Most economies are considered mixed economies since the majority of governments control some aspect of the means of production.

What makes a mixed economy crucial?

A mixed economy allows for private production participation, which in turn promotes healthy competition with the potential for profit. Additionally, it supports public ownership of the manufacturing sector, which can help with social welfare demands. The most effective use of resources is made possible by mixed economic systems. In truth, the Indian government uses economic planning to distribute and use resources. As a result, it can reduce cyclical variations, prevent shortages, and boost production effectiveness. Some of the following features of a market economy are present in a mixed economy. It safeguards private property first. It also permits prices to be determined by the market economy and the principles of supply and demand. Third, it is motivated by people's particular self-interest.

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Which factor is important to consider when buying a home air conditioning unit that is supposed to last several years

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When purchasing a house's air conditioning equipment that is expected to last several years, capacity should be taken into account.

What are the most significant considerations when purchasing a home?

Purchasing a home is sometimes one of the most significant purchases you will make in your lifetime. When you locate a home you want to purchase, you should first determine whether you can afford it, then ask your lender for a pre-approval letter, which indicates that the lender feels you are likely approved for a mortgage loan, and only then should you make an offer. If the seller accepts your offer, you will be required to make a down payment and get your mortgage financing authorized by an underwriter and lender.

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plants, animals, farming, and resources in nature: organization and direction of companies and other organizations: management of money, and things that are worth money: medical care and treatment:

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Agriculture, Food Business, management, Finance Health science are the career cluster.

The jobs in the Finance cluster are auditor, monetary analyst, treasurer, economist, financial institution worker, debt counselor, or coverage professional. a number of the jobs in the Finance profession cluster require a bachelor's diploma or specialized certifications.

Career Clusters become aware of the understanding and competencies learners want as they comply with a pathway in the direction of their professional dreams. The know-how and abilities recognized shape a sturdy foundation for learner success whether the inexperienced persons are in excessive faculty, university, technical training, or within the place of job.

The career clusters also offer a way of exploring the numerous occupational alternatives. every Cluster is divided into one-of-a-kind pathways. Pathways are grouped by means of the understanding and competencies required for occupations in these professional fields. each pathway offers coaching as a foundation for success in an array of careers and educational hobbies.

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A group of similar products with slight variations in the marketing mix to satisfy different needs in a market is a(n): Answer options extended product brand product assortment product line

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A group of similar products with slight variations in the marketing mix to satisfy different needs in a market is a  product assortment. A product line is a collection of related goods that have minor changes to meet the various needs of customers.

By meeting the needs of a varied target market, the product line hopes to generate the most sales feasible. A product is anything that can be supplied to a market in order to satiate a customer's need or desire. In marketing, a product is an item, system, or service that is made accessible for consumer usage in response to consumer demand. Consumption is the act of using products and services provided by producers and distributors to fulfil one's demands.

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Quick Co. acquired the following assets from a liquidating competitor for a $200,000 lump-sum purchase price:

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Assets for which the fair value option has been chosen; loans held-for-sale; policy loans... Lending policy normally focuses on the acquisition of credit.

What do you meant by liquidating competitor?

Liquidate refers to the process of selling assets or property to generate cash or cash equivalents. The process of ending a firm and dispersing its assets to claimants is referred to as "liquidation."

Liquidate is derived from the Latin verb liquidare, which also means "to melt" or "to clarify." Since liquidate refers to assets, a recipe can instruct you to liquefy the butter rather than liquidate it. To liquidate means to conclude a business successfully and pay off debts by selling stocks or other assets in order to generate cash.

Asset liquidation refers to the process of turning non-liquid assets into liquid ones through open market sales. Assets can be liquidated willingly by a person or business, or they can be made to do so through the bankruptcy process.

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Which statement about inventory is true?

A. It is not an important aspect of financial analysis for a trading company.

В.
It is a current liability for a business.

C. A company's inventory does not become obsolete.

D. A company expects to convert it into cash in the near future.

E. it is an income for the business

Answers

D is correct
Because is true

The true statement about inventory is that the company exchanges into cash in the upcoming future years.

Option D is the correct answer.

What is an inventory?

An inventory is the goods lying at the end of the accounting year which is reported as closing stock on the balance sheet.

Inventory is one of the short-term assets of the company as it converts it into cash within a year or less. It is reported in the balance sheet of the company at the closing of an accounting year. It is recognized under the current asset sub-head with the primary head as assets.

Therefore, the explanation given in Option D is best represented by the inventory.

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Which of the following is true when the estimate of an asset's useful life is changed?
A) The new estimate is ignored until the last year of the asset's life.
B) The depreciation expense in the prior year is restated.
C) Prior years' financial statements must be restated.
D) The asset's remaining depreciable book value will be spread over the asset's remaining life.

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Answer:

D) The asset's remaining depreciable book value will be spread over the asset's remaining life.

Pat recently moved to San Diego from Nevada, where he has an inactive broker license. He has passed the California broker license exam, but has not yet received his license. Pat found a buyer for a house in the neighborhood that was listed for sale. Escrow is scheduled to close in two days and Pat is looking forward to his commission check. Pat receives a call from the escrow officer telling him he will not receive a commission check. Which statement is correct?

Answers

The correct statement is: Pat is not a licensed California real estate broker at the time the compensation was

Who are Real estate brokers?

A licensed professional who assists in the purchase, sale, and transfer of real estate is known as a real estate broker. They help clients with paperwork, making decisions, and complying with legal requirements by utilizing their expertise and understanding of the real estate industry.

There are three kinds of brokers:

Internet brokers are a brand-new type of digital investment that connects with customers online.Discount agents A stockbroker who executes buy and sell orders at a lower commission rate is known as a discount broker.Brokers with all services.

the distinction between a broker and an agent:

Insurance companies are represented by agents. Buyers are represented by brokers. The insurance companies that agents represent sell policies. Brokers look for insurance policies from various companies.

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Which pricing strategy assumes customers will switch to a new product because of the lower pricing and has the purpose of increasing its market share by taking advantage of economies of scale

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Businesses use penetration pricing to attract customers to a new product or service by initially offering a lower price. A lower price assists a new product or service in entering the market and luring customers away from competitors.

Penetration pricing occurs when a company introduces a low price for a new product or service. The initial price undercuts customers competitors, forcing them to match the offer or implement alternative strategies quickly. Customers of competitors may switch to the cheaper offer, and new customers may join as well. Penetration pricing: this strategy allows you to set a low initial price on a new product or service in order to gain a large sales or market share.

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Who can grant or deny a petition for the reinstatement of a real estate license that had been revoked?

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It depends on the state.

The agency or organization that issued the real estate license in the first place would be the one to grant or deny a petition for reinstatement of a revoked license. This is typically a state-level regulatory agency or professional organization that oversees the licensing and regulation of real estate agents and brokers.

project planning, an activity of a project manager, _____.

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Project management activity: project planning includes identifying project tasks and estimating completion times and costs.

Software Project management involves a wide range of duties, such as task scheduling, project planning, determining the product's scope, cost estimation in several currencies, etc.

The project's needs, the idea behind it, measurable objectives, results, and deliverables, as well as the actions that can and cannot be taken to ensure its success, are all included in the project's scope.

A project manager creates the project roadmap during the project planning phase of project management, which also includes the work breakdown structure, project constraints, project scope, and risk analysis.

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In 2010, Freeze Company had credit sales of $900,000 and granted sales discounts of $18,000. On January 1, 2010, Allowance for Doubtful Accounts had a credit balance of $22,500. During 2010, $37,500 of uncollectible accounts receivable were written off. Past experience indicates that 3% of net credit sales become uncollectible. What should be the adjusted balance of Allowance for Doubtful Accounts at December 31, 2010

Answers

Adjusted balance in Allowance accounts = $ 22500 beg credit balance - $ 37500 written off + ($900000 credit sale x 3%)= 22500 – 37500 + 27000

= $ 12,000.

Credit is the trust that permits one party to lend money or resources to another party, with the second party promising to repay or return those resources at a later period rather than immediately repaying the first party. In other words, credit is a technique of formalising, legally enforcing, and extending reciprocity to a broad number of unconnected persons.

The resources offered may be monetary or in the form of products or services. Credit includes any type of deferred payment. A creditor, also known as a lender, extends credit to a debtor, also known as a borrower.

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The weak form of the efficient-market hypothesis asserts that stock prices do not rapidly adjust to new information contained in past prices or past data. stock prices do not rapidly adjust to new information contained in past prices or past data, and future changes in stock prices cannot be predicted from past prices. technicians cannot expect to outperform the market. future changes in stock prices cannot be predicted from past prices, and technicians cannot expect to outperform the market. future changes in stock prices cannot be predicted from past prices.

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I really don’t know but mark me brainliest because I lost most of my points

Sam's Sushi serves only a fixed-price lunch. The price of $9 and the variable cost of $4 per meal remain constant regardless of volume. Sam can increase lunch volume by opening and staffing additional check-out lanes. Sam has three choices:


Monthly Volume Range

(Number of Meals) Total

Fixed Costs

1 Lane 0–5,000 $ 26,000

2 Lanes 5,001–8,000 31,000

3 Lanes 8,001–10,000 36,600

Required:


a. Calculate the break-even point(s).


b-1. Calculate the profit (or loss) for each alternative, assuming Sam can sell all the meals he can serve.


b-2. Should Sam operate at one, two, or three lanes?

Answers

The break-even point(s) will be  5200, 6200, 7320 for the 1 lane, 2 lane and 3 lanes respectively. There will be loss in the 1 lane and profit in the remaining lanes. Sam should opearte 3 lanes as it has highest profit.

What is a Break-Even Point?

Break-even point will aid in more intelligent product pricing. Pricing involves a lot of psychology, but understanding how it will impact your profitability is just as crucial. Particularly while ensuring that you can cover all of your obligations.

Sales price /unit -  variable cost/ unit = contribution margin/ unit.

                                                =9-4 = 5

BEP = Fixed Cost / margin of contribution per unit  

           

1 lane  =26000/5= 5200        

2 lanes  =31000/5= 6200        

3 lanes  =36600/5 = 7320

The 1 lane break even is not feasible as 5200 is more than the relevent range

The two possible break evens are 6200 and 7320      

           

b.            Meals        Contribution       Fixed costs     Profit/(Loss)  

1 lane      5000             25000              26000             -1000    

2 lanes    8000            40000               31000              9000    

3 lanes    10000           50000              36600             13400    

           

Sam should opearte 3 lanes as it has highest profit.

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Phillip purchased a single family home 10 years ago for $235,000. Since then, he has accrued $85,455 is deducted depreciation. If Phillip were to sell his property today, what would be his adjusted basis

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If Phillip were to sell his property today, his adjusted basis is $149,545.

In accountancy, depreciation is a time period that refers to 2 elements of the identical idea: first, the actual lower truthful price of an asset, together with the lower fee of manufacturing unit gadget each yr as its miles used and put on, and 2nd, the allocation in accounting statements of the unique fee of the assets to durations wherein the assets are used (depreciation with the matching precept).

Depreciation is for that reason the decrease within the fee of belongings and the technique used to reallocate, or "write down" the value of a tangible asset (including device) over its beneficial existence span. corporations depreciate long-term assets for each accounting and tax purposes.

The lower in the price of the asset impacts the stability sheet of a business or entity, and the method of depreciating the asset, accounting-clever, impacts the internet income, and accordingly the income announcement that they record. normally, the fee is allocated as depreciation cost for a few of the durations wherein the asset is predicted for use.

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which of the following is more like laws and regulations a.standard
b.wages
c.prices
d.resources

Answers

Answer:

a. standard

Explanation:

A standard is more like laws and regulations because it defines the level of quality or minimum requirements that is acceptable in a business firm. Thus, all of the activities and operations of the business firm are developed and designed to the set standard.

This ultimately implies that, standard are set by the management or top executive based on certain criteria and it is expected that all the various parts of the business, as well as the people working there are operating at par with it.

For example, the Occupational Safety and Health Administration (OSHA) is a federal agency saddled with the responsibility of assuring and ensuring safe and healthy working conditions for employees by setting and enforcing standards, providing education, trainings and assistance to various organizations.

According to the Occupational Safety and Health Administration (OSHA), safety precautions such as wearing a personal protective equipment e.g masks (respirators), ear plugs, safety boots, gloves, helmet, etc. are very important and essential to be used by workers while working in a hazard prone environment or industries.

What type of mortgage has a set period of regular mortgage payments, at the end of which the remainder of the loan is due in one larger final payment

Answers

In contrast to a typical mortgage with amortising principal, a standing mortgage is a sort of interest-only loan. A standing mortgage has an interest-only period, after which principal payments begin, and then the remaining principal is due as a balloon payment at the conclusion of the mortgage's term.

There are three primary mortgage kinds to pick from when buying a home: fixed-rate, conventional, and standard adjustable rate. All offer unique advantages and drawbacks that support diverse homebuyer profiles. The four primary house loan options are covered here if you know what you can afford: conventional loan, FHA loan, VA loan, and USDA loan. Since you probably qualify for more than one type, take some time to learn the advantages and disadvantages of each. A standard loan is one with flat monthly payments and a fixed rate of interest during the course of amortisation. A mortgage loan with a loan-to-value ratio of less than or equal to 90% is referred to as a "standard loan" in Example 1.

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PLEASE HELP ASAP!! CORRECT ANSWER ONLY PLEASE!!!

Whitney’s employer contributes to the employees’ 401(k) plans as part of its benefit package. The company will match up to 6% of an employee’s salary. Suppose that Whitney’s salary is $2,800 per month, and she currently contributes 3% of her salary to her 401(k).

Whitney’s employer contributes ___% of her salary to her 401(k), or ___$ per month. To maximize her employer’s contributions, Whitney should contribute at least ___% of her salary to her 401(k).

Answers

Answer:

3%, 84, 6%

Explanation:

So lets look at what they are saying. They say that the company lets Whitney match up to 6% of her salary.

They say that Whitney matches up ONLY 3% of her salary

They also say that Whitney's salary is is 2,800 dollars per month.

The firs question asks what percenage of her salary Whintney's company contributes.

They said that Whitney  contributes 3% of her salary.

So this means that the first answer box is 3%. Remember that it would not be 6%, becuase that is the MAXIMUM percentage that whitney's emplyers can contrubite of her salary, not the actualy percentage that whitney's employers are actually contributing.

Next we they ask for the amount of money this eprcentage is.

To find this, take 3% of her smonthly salary, which we know is 2,800:

2800*0.03

=

84

So we know that the answer for the second fill in box is 84.

Finally we have the third fill in box which is asking what percentage of her salary Whitney SHOULD be contributing.

Well, recall that they said the MAXIMUM percentage the company will ocntribute is 6%? And Whitney is only contributing 3%?

The answer to the last fill in box would be 6%, since that is the MAXIMUM amount of money that can be put into her 401k. She is only putting in 3% of her salary, which isnt as benfical.

help me please thank you..........

Answers

Answer:

It is 60 million years ago according to the graph.

I agree, 60 million years. They are calling zero present day, and each tiny block before that is 10 million years.

Enter the current total of consumer and installment debt (money borrowed for cars, appliances, credit cards, etc.) owed by your parents. (Do not include mortgage debt or other debt already included on this application.)

Answers

Consumer debt consists of personal debts that are owed as a result of purchasing items that are used for individual or household consumption. These goods can be purchased for consumption either by an individual or by an entire household.

Consumer debt can take many forms, including credit card debt, school loans, auto loans, mortgages, and payday loans, just to name a few. In contrast to other debts, such as those utilized for investments in the process of running a business or debts incurred by the government as a result of its activities, they are unsecured obligations.

A loan that the borrower is required to repay in predetermined amounts of money at regular intervals is called an installment debt. In most cases, the repayment of an installment loan takes the form of equal monthly payments that comprise both interest and a portion of the principal.

This kind of loan is known as an amortized loan, and in order to obtain one, the lender will need to prepare a standard amortization schedule that outlines the payments that will be made over the course of the loan's term.

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Santa Fe Retailing purchased merchandise "as is" (with no returns) from Mesa Wholesalers with credit terms of 2/10. N/60 and an invoice price of $28. 300. The merchandise had cost Mesa $19. 301. Assume that both buyer and seller use a perpetual inventory system and the gross method. Prepare entries that the buyer records for the (a) purchase, (b) cash payment within the discount period, and (c) cash payment after the discount period. Prepare entries that the seller records for the (a) sale, (b) cash collection within the discount period, and (c) cash collection after the discount period

Answers

Entries that the buyer records for the purchase:

Debit Accounts Payable (Mesa Wholesalers) for $28,300

Credit Inventory for $28,300

How do you prepare the other entries?

Entries that the buyer records for the cash payment within the discount period:

Debit Cash for $27,724 (28,300 x 0.98)

Credit Accounts Payable (Mesa Wholesalers) for $27,724

Entries that the buyer records for the cash payment after the discount period:

Debit Cash for $28,300

Credit Accounts Payable (Mesa Wholesalers) for $28,300

Entries that the seller records for the sale:

Debit Sales for $28,300

Credit Accounts Receivable (Santa Fe Retailing) for $28,300

Entries that the seller records for the cash collection within the discount period:

Debit Accounts Receivable (Santa Fe Retailing) for $27,724

Credit Cash for $27,724

Entries that the seller records for the cash collection after the discount period:

Debit Accounts Receivable (Santa Fe Retailing) for $28,300

Credit Cash for $28,300

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When launching a new clothing line, a company must focus primarily on the needs and wants of ______. Multiple choice question. competitors corporate partners consumers suppliers

Answers

When launching a new clothing line, a company must focus primarily on the needs and wants of c) consumers.

A consumer is a person or a group that isn't directly involved in entrepreneurial or business operations and who intends to order or uses bought particulars, products, or services primarily for particular, social, family, or ménage requirements. The expression is most constantly used to describe someone who makes purchases for their own use.

A consumer in an frugality purchases goods or services primarily for particular use rather than for resale or for marketable objects. guests spend plutocrat on products or services.

As a result, consumers are an essential element of any frugality and play a pivotal part in the profitable system of a commercial society. Without consumer demand, manufacturers wouldn't have one of their primary driving forces the desire to vend their goods to consumers.

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Shauna borrows $400 from her parents. She pays them back plus 4% simple interest. What is the total amount of money Shauna will owe her parents

Answers

 Shauna borrows $400 from her parents. She pays them back plus 4% simple interest. the total amount of money Shauna will owe her parents 400 + 0.04(400).

Simple Interest (S.I.) is a way for figuring out how much interest will accrue on a specific principle sum of money at a certain rate of interest. For instance, if someone borrows Rs. 5000 at a rate of 10 p.a. for two years, they will pay S.I. on the borrowed money for those two years. Ordinary simple interest and precise simple interest are the two forms of simple interest. In order to calculate interest, a year is divided into 360 days for ordinary simple interest and 365 days (or 366 days for leap years) for precise simple interest. The simple interest calculation formula is the same for both approaches.

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When trying to figure out what your workplace means by business casual, it is best to _____. a. Be flamboyant b. Be risky c. Be conservative d. Be sloppy Please select the best answer from the choices provided A B C

Answers

Answer:

BE CONSERVATIVE

Explanation:

When trying to figure out what your workplace means by business casual, it is best to BE CONSERVATIVE.

Which of the following statements concerning a monopolistically competitive industry is correct? Multiple Choice If there are short-run losses, firms will leave the industry and the demand curves of the remaining firms will shift to the right. If there are short-run economic profits, firms will enter the industry and the demand curves of existing firms will shift to the right. If there are short-run losses, firms will leave the industry and the demand curves of the remaining firms will shift to the left. If there are short-run economic profits, firms will leave the industry and the demand curves of the remaining firms will shift to the right.

Answers

Answer:

If there are short-run losses, firms will leave the industry and the demand curves of the remaining firms will shift to the right.

Explanation:

Monopolistic competition can be defined as an imperfect competition where many producers or organizations sell differentiated products that are not perfect substitutes. Examples of firms or organizations engaging in a monopolistic competition are restaurants, shoes, clothing lines etc.

Generally, a monopolistic competitive market is characterized by the presence of large numbers of firm (producers) and a very low entry barrier.

Hence, in a monopolistic competition, firms have a degree of control over price, make independent decisions and can freely enter or exit the market in the long-run. Therefore, these firms combine elements of both monopoly and competition.

When a monopolistically competitive firm is in long-run equilibrium marginal revenue is equal to marginal cost (MR = MC) . This ultimately implies that in the long-run, firms engaging in monopolistic competitive market are often going to manufacture the quantity of goods where the marginal cost (MC) curve intersect with the marginal revenue (MR). Also, the price set would be greater than the minimum average total cost (ATC).

Thus, a monopolistic competitive producer has a highly elastic demand curve and firms would eventually break even in the long-run.

Hence, the true or correct statement concerning a monopolistically competitive industry is that, if there are short-run losses, firms will leave the industry and the demand curves of the remaining firms will shift to the right i.e there would be an increase in the demand for their products.

Suppose you buy a share of stock for $2500 today and sell it for $7000 at the end of six (6) years. What interest rate will you have earned on your investment

Answers

The interest rate is 18.72 percent. An interest rate tells you how much borrowing costs and how much saving pays off.

What is an example of an interest rate?

For instance, if you borrow $100 at a rate of 5%, you will have to repay the lender $105 in full. The lender will turn a profit of $5. Throughout your life, you may develop a variety of interests. The true amount you owe will be determined by the interest rate on each loan.

We use the following formula to determine the interest rate: FV = (1+r)" * PV, where PV is the initial amount, initial deposit, initial investment, or amount at zero FV is the future value, n is the number of years/period, and r is the interest rate.

After substituting the values into the formula, we have the following result: "FV = (1+r)" PV *

7000 = (1+r)* 2500 7000 2500 = (1+r)6 7000 r = ( 1/6-1 2500 r = 0.18721 = 18.721% = The rate of interest is 18.721% per annum.

The number of periods/years (n) is six.

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The _____________was created by Congress to allocate acreage among individual farmers, encouraging them to take land out of production by paying them subsidies.

Answers

The Agricultural Adjustment Act (1933) was created by Congress to allocate acreage among individual farmers, encouraging them to take land out of production by paying them subsidies.

What was the function of the Agricultural Adjustment Act of 1933?

A federal law, the Agricultural Adjustment Act (AAA), was passed by U.S. President Franklin D. Roosevelt in 1933 as a part of his New Deal. The law offered incentives to farmers in exchange for reducing the amount of some crops they produced. The purpose of the subsidies was to reduce overproduction in order to raise the price of agricultural products. AAA successfully achieved its goals during its short existence. Crop stocks fell and prices rose. It is now considered the most successful New Deal initiative.

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