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1. A local market for clay bricks has weekly demand described by P=1.55-0.008Q and supply described by P=0.32+0.0012Q. Calculate the equilibrium quantity
2. A local market for clay bricks has weekly demand described by P=1.55-0.008Q and supply described by P=0.32+0.0012Q. Calculate the equilibrium price
3. In response to a price decrease from $27 to $22, sales quantity increases 13,200 to 14,800. Calculate the absolute value of the price elasticity of demand
You invest $70,000 in a savings account which offers you an interest of 8%. After 10 years you decide to withdraw equal amounts for the next 15 years on a monthly basis. What would the value of the withdrawals be equal to?
Suppose that the adult population is 152 million, the number of unemployed is 19 million and the labor force participation rate 63%. What is the unemployment rate?
During the last year, the demand for books has been falling. At the same time, some industry observers expected that several smaller book manufacturers might exit the market due to the strong competition imposed by Kindle. Use a demand and supply gra..
Who gets scarce resources in a market economy?
Suppose an environmental regulation costs $400,000 today (one time payment) and would save $1 million worth of health costs 20 years from now. a) Would you recommend the program at a discount rate of 0%? 2%? 10%? b) Which discount rate would industry..
Why do you think some celebrities are effective at pitching products while others are not? Experts cite three factors underlying source credibility: expertise, trustworthiness and likability. However, new research now shows that only one of the three..
Are there any studies that explore the higher net present value (NPV) of education in countries with higher Gini coefficients? Additionally, do any of these studies include the impacts of economic mobility as a reducing factor of the NPV or price of ..
Do some research on the Internet to determine what fiscal policy initiatives the U.S. government used to address the economic crisis of 2008-2009. Which initiatives seem to have been most effective?
You are told by the analyst that Apex Trading Co stock performance is unrelated to the performance of the market. The value of Apex’s beta and its standard error are calculated to be 0.314 and 0.256 respectively. The model is estimated using 50 quart..
Which of the following scenarios will most likely shift the supply of cars to the left (decrease in supply)? -The price of cars decreases. -The price of automotive paint decreases. -The price of steel and aluminum increase. -Automobile workers become..
Illustrate what are the major determinants of price elasticity of demand. Use those determinants and your own reasoning in judging whether demand for each of the following products is probably elastic or inelastic.
Consider we wanted to know how many trips versus dinners out you could purchase. If you were told that X = number of trips and Y = the number of dinners out and you were given the following budget information; M=4000, Px=800, and Py=100, Show in your..
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