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Use the formula in figure 4.7 to calculate the exact elasticity of demand in the following examples: Then tell if, in each case, demand is elastic, inelastic, or unitary elastic.
(a) When the price of a deluxe car wash rises from $10.00 to $11.00, the number of daily customers falls from 60 to 48</brclear="all">
Use ROR analysis to determine whether it is better to sell the rights to the property today (time zero), or begin development using either the "A" or "B" scenarios. Assume the investor is seeking a nominal before-tax minimum ROR of 10%. Verify you..
Mining is proposed for a wilderness area that provides two benefits: recreation (due to backpacking opportunities) and biodiversity (there are endangered wildlife and plants). The mining is expected to reduce backpacking visits from the current 10,..
Steven has an income of $50, which he can spend on two goods: DVD and cups of iced coffee. Both are normal goods for him; each DVD costs $10 and each cup of iced tea costs $2. For each of the following situations
Suppose that two people, Michelle and James each live alone in an isolated region. They each have the same resources available, and they grow potatoes and raise chickens. If Michelle devotes all her resources to growing potatoes, she can raise 200..
1. in the x11 multiplicative decomposition method yt x c x s x e an ma 3 smoother is applied to the estimated
This would cover years 4 and 5, after the manufacturer's warranty has expired. Suppose that the expected repair costs for years 4 and 5 are $850 per year. If your discount rate is 5.5% per year, should you purchase the extended warranty.
A recent college graduate got a job and began a saving account. He authorized the bank to automatically transfer $75 each month from his checking account to the savings account. The bank made the first withdrawal on July 1,2007
Investors know for sure that the CEO of firm A will undertake an investment that will yild $100 million profit next year and then $2 million each year after that for 10 years. They also know for sure that the CEO of firm B will undertake an invest..
Five members in a family own a farm in rural Mexico. 2 people = $1600 TFO. 3 people =$3000 TFO. 4 people = $2300 TFO and 5 people = $2500 TFO. Each member has the opportunity to migrate to the nearest city where there are two different types of job..
Suppose the real GDP of a country increased from 2,000 billion to 2,100 billion in one year. In the same year, population growth rate was 3%. How much was the growth rate of real GDP per capita in that year
The New York Times (Nov. 30, 1993) reported that "the inability of OPEC to agree last week to cut production has sent the oil market into turmoil the lowest price for domestic crude oil since June 1990."
Suppose there are two firms in a market who each simultaneously choose a quantity. Firm 1's quantity is q1, and firm 2's quantity is q2. Therefore the market quantity is Q = q1 + q2. The market demand curve is given by P = 60 - 4Q.
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