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Assist Adam, a local shop owner, in determining if he has made the right decision to raise prices by answering the following questions. He implemented a price increase from R3-00 to R7-00 and observed a resultant decrease in quantity demanded from 18 to 12 Mars bars in his weekly sales.
(a) Calculate the price elasticity of demand over the range of the linear demand curve for Mars bars.
(b) What does the elasticity coefficient reveal? Explain.
Which of the following statements represents how consumers and workers react to socially responsible behavior by business? Why is a low level of inflation desirable in an economy, and why is deflation not desirable?
Open a pizza restaurant and is considering either selling the bonds and using the 100,000 to start his restaurant or borrowing the 100,000 from a bank which would charge him an annual interest rate of 7 percent.
Conscious Capitalism is in the embryonic stages of promoting this employee love and caring for each other in the workplace. Why? Explain, example
q.the table below explain how is the aggregate demand and short-run aggregate provide schedules of a country in which
A bloom berg business week subscriber study asked In the past 12 months when traveling for business what type of airline ticket did you purchase most often? a second question asked if the type of airline ticket purchased most often was for domestic o..
Mrs. Smith is earning a loss and should shut down in the short run. Mrs. Smith is earning a loss but should continue to operate in the short run. Mrs. Smith is earning a profit since the price is above the average variable cost.
A High End Department store has a replacement cost of $4,596,000. A fire caused $500,000 damage to the store's inventory. Find the amount the insurance company will pay if the store carried a policy with a face value of $3,500,000 and a coinsurance c..
Safelife insurance company has $50 million in assets, $43 million in liabilities, and $7million in shareholders' equity. The duration of liabilities is 4.2. If Safelife wants to immunize its net worth against interest rate risk (i.e. set the duration..
The time horizon is 10 years. Is there a meaningful IRR? Is the project attractive? Construct the PBt graph.
Market equilibrium occurs at that price for which
Illustrate the flow of students between the two states (involved and uninvolved) using a diagram. What is the steady-state fraction of residents who.
Identify the equilibrium rate of output (or GDP). If full-employment GDP equals $2500 billion ,what kind of Gap will develop (recessionary or Inflationary ) ? Explain clearly. How much is the gap ? What is the value of the multiplier?
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