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Jay Welchsler agrees to purchase a car from a local car dealer, the Con Car Co. The purchase price is $15,000. Jay has the cash to pay the entire amount and wants to do so. Con's sales manager uses the following argument to convince him to finance the car: "All we require is a down payment of $3000. Then you can borrow $12,000 from our finance company at 12 percent. You will make monthly payments of $266.93 for 5 years (60 months), a total of $16,015.80. If you do that, you get to keep your $12000. Now suppose you keep this money in a money market account that pays you 8 percent compounded quarterly. In 5 years, the $12,000 will grow to $17,831.40. That means that you will be better off by $1,815.60 than if you pay the $12,000 cash. Assume all the numbers are correct. Does the offer sound too good to be true? Why?
1. in the model of a dominant firm assume that the fringe supply curve is given by q -1 0.2p where p is market price
in the system of approval voting each voter may vote for as many candidates as she wishes. if there are three
The Zinger Company manufactures and sells a line of sewing machines. Demand per period (Q) for a particular model is given by the following relationship: Q = 400 - .5P
(a) List and describe the three tools of the Federal Reserve. Which of these three is the most important (and it's the most frequently used, too) (b) Continuing with what you answered for part a, explain how open market operations work. Be as comp..
Estimate whether and how each of the following factors would shift demand curve for chiropractic visits; an increase in the out of pocket price of chiropractic visits.
7, recent tax reforms make college tuition partially tax deductible for certain families. this should motivate more people to attend college. how will this higher demand for college education affect tuition prices how will it affect the cost of co..
a restaurantbar is analyzing its pricing of beer. it has determined that the price elasticity of demand for beer is
researchers have estimated the long run demand elasticity for almonds is -0.47 and the long run supply elasticity is
our company wants to invest in a new technology driven product. it is a significant investment so management wants a
1. Why is there such a difference in Asia's share of global real GDP, depending on whether the computation uses purchasing power parties or exchange rates 2. Why is Asia's "economic size" so much smaller on a per capita basis than on an a..
A gasoline station very near a professional football stadium parks cars on its lot to make money on game days. Last year it charged $4.00 per car and parked 1000 cars. This year it raised the parking price to $5.00 and parked 850 cars. Did the statio..
analyze and comment on economic analyses of health administrative innovations that are germane to the provision of
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