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A major PC producer lowers the price of its desktop PC from $1,000 to $800. The sale of desktops increases by 25 percent. The sales manager notices that sales of the company's laser printers increase by 15 percent.
a. Calculate the arc price elasticity of desktop PC. Explain what it means.
b. Why have the sales of laser printers increased? Calculate the arc cross price elasticity of laser printers. Based on your calculation, is a laser printer a substitute or complement? Why?
c. Was the new policy beneficial for increasing the revenues of the producer? Explain.
d. If you were to estimate a demand equation for desktop computers, which variables would you choose as explanatory variables?
For the 140th payment what is the breakdown between principal payment vs interest payment, Respectively
(a) Find the probability that the waiting time for the arrival of a bus will be between 2 and 7 minutes?
At what rate have sales been growing? Round your answer to the nearest hundredth.
Measuring asset cost, units-of-production depreciation, and asset trade Pact Trucking Corporation uses the units-of-production depreciation method.
as the difference between the costs of short- and long-term debt becomes smaller which financing plan aggressive or
Martin's Yachts has paid annual dividends of $2.00, $2.45, and $2.90 a share over the past three years, respectively. The company now predicts.
Calculate the percentage change in the warrants' floor value for a ± 1 5-percent change in the market price of the shares.
What's the present value, when interest rates are 7.5 percent, of a $170 payment made every year forever? (Round your answer to 2 decimal places.)
The firm has a tax rate of 30 percent, an opportunity cost of capital of 12 percent, and it expects net working capital to increase by $57,000 at the beginning of the project. What will be the net cash flow for year one of this project?
Swannee Resorts is considering a new project whose data are shown below. The equipment that would be used has a 3-year tax life, would be depreciated by the straight line method over the project's 3 year life, with zero salvage value.
After 7 years of monthly payments on $160,000 at 3% for 25 years. Round to nearest cent.
The discount rate for primary credit is the second most commonly used monetary policy tool. However, banks rarely borrow money at the discount rate.
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