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Q1. The demand for good X is estimated to be Qx
d = 10, 000 - 4PX + 5PY + 2M + AX, where PX is the price of X, PY is the price of good Y, M is income and AX is the amount of advertising on X. Suppose the present price of good X is $50, PY = $100, M = $25,000, and AX = 1,000 units. Based on this information, the income elasticity of good X is
Q2. ABC Company is considering a private placement of equity with XYZ Insurance Company.
Explain the interaction between ABC Company and XYZ. How will XYZ serve ABC's needs, and how will ABC serve XYZ's needs?
What was the accounting profit for the new business. What was the economic profit or loss. Explain your calculations for both questions.
A brewery is considering two potential production investments.
Consider a small economy in which consumers buy only two goods pies and tarts. In order to compute the consumer price index for this economy for two or more consecutive years.
Can you find a Nash equilibrium in pure strategies that is not efficient. In some legislatures, proposals for modifications of the law are formulated by committees.
Study by the National Park Service revealed that 50 percent of vacationers going to the Rocky Mountain region visited Yellowstone Park, 40 percent visit the Tetons, and 35 percent visit both.
School tries to discourage Twinkie consumption by raising the price to $.40, by how much will Matt's mother have to increase his lunch allowance to provide him.
If the government uses a tax to get producers to internalize their externality, what is the net price received by producers.
What role did Red cloud play in the factional splits that occurred in the late 1860s and 1870s.
Distinguish between the resources market and the product market in the circular flow model.
One day you realize you're tired of smelling like refried beans all the time and begin thinking about starting your own business. After doing some investigation you decide to spend 15 hours per week running a photocopy service in your dorm.
Assuming labour demand is downward sloping and that the labour market is competitive, what happens to national income as a result in immigration.
Describe a skimming price and a penetration price, and advise them whether they should charge a skimming price or a penetration price, with supportive reasoning for and against each pricing alternative.
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