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When the price of a new Toyota Corolla was $20,000, a dealership sold 15 cars in one week. The car was put on sale with incentives worth $4,000 (cash). As a result, the same dealership sold 22 cars in next week. Calculate price elasticity of demand and interpret your result. You must show your work.
Analyze the economic impact of current approaches to controlling air pollution to determine which approach is the most effective. Provide support for your rationale.
In this discussion, you will explain the role of the business cycle in government and private sector decisions. Data on GDP and economic growth are considered lagging indicators because they report information on what is already known. How reliable a..
Is the Fed currently pursuing an expansionary, neutral, or contractionary monetary policy? What if any difficulties do you think may be encountered in implementing the current policy.
Use a spreadsheet to develop a depreciation schedule showing the machine's depreciation allowance and book value over its depreciable life.
There is resistance to exchange rate fluctuations because changes int he value of a currency are likely to cause all of hte following except.
Consider an economy with two people, Donald and Hillary, and two goods, x and y. Donald is endowed with x¯ units of good x and has none of good y. Hillary is endowed with y¯ units of good y and has no units of good x. Their preferences over these two..
A labor contract provides for a first-year wage of $15.00 per hour and specified that the real wage will rise by 5 percent in the second year of the contract and by 7.5 percent in the third year. The CPI is 1.00 in the first year, 1.02 in the second ..
An incoming engineering student (age 18) expects to get a job that pays $53700 per year starting four years from now, and can reasonably expect that that salary will increase at a rate of 3.6% per year throughout his career. If he is planning to reti..
It has been determined that, in aggregate, financial institutions with depository accounts currently hold excess reserves equal to $3 billion—that is, they hold $3 billion more than is necessary to meet the reserve requirements associated with existi..
Consider a credit default swap (CDS) of a notional amount $10 million and a term of one year. The CDS spread is 120 basis points and the payment is quarterly. If the bond has not defaulted, calculate the payment from B to A in the first quarter of th..
What is the formula for measuring the price elasticity of supply? Suppose the price of apples goes up from $20 to $23 a box. In direct response, Goldsboro Farms supplies 1,300 boxes of apples instead of 1,200 boxes. Compute the coefficient of price e..
The Environmental Protection Agency (EPA) is an independent department with a cabinet level secretary of Environmental Affairs. The Kyoto Protocol had strong support in the U.S. Senate.
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