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Consider a market where supply and demand are given by QXS = -14 + PX and QXd = 91 - 2PX. Suppose the government imposes a price floor of $42, and agrees to purchase any and all units consumers do not buy at the floor price of $42 per unit.
a. Determine the cost to the government of buying firms' unsold units.$
b. Compute the lost social welfare (deadweight loss) that stems from the $42 price floor.
Second, Describe two problems with banks as international lenders associated with international debt
A new tennis court complex is planned. Both alternatives will last 18 years, and the interest rate is 7%. Use present worth analysis to determine which should be selected.
Illustrate what is the purpose of the foreign exchange markets
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Consider Bob, he washes his car by hand rather than taking it to the local car wash. When asked why he washes it by hand, Bob explains "you should never pay for something you can do yourself.
Picabo borrows $1,000. To repay the amount she makes 12 equal monthly payments of $90.30. Determine the following: The effective monthly interest rate
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Mamma Mia's Pizza must replace its current pizza-baking oven. The two best alternatives are Crispy Cruster and Easy Baker. Assume an income tax rate of 50% and MARR after-taxes of 10% per year. Which pizza-baking oven would you select and why
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Assume initially that the demand and supply for premium coffees (one-pound bags) are in equilibrium. Now assume Starbucks introduces the world to premium blends, and so demand rises substantially. Describe what will happen in this market as it moves ..
Different nations answer the what, how, and for whom questions differently. China for instance, builds dams using many workers and only a little capital equipment.
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