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You run a small pizza shop named Pizza Hat. Initially you sold pizzas for $8 and every week you sold around 3000 pizzas. Each pizza costs you $3 to make. One day you decided to over discounts to customers to see if you can boost sales signicantly. So you slashed the price to $6, and it turned out that you can sell 3000 more pizzas. Hence you conclude that the elasticity of demand for your pizzas at $8 is ________. Suppose the elasticity of demand is constant (does not vary with price). In order to maximize the prots, you should set the price at $_________.
A man wants to deposit $50,000 now and $60,000 at the end of six years in a bank that pays 12% interest compounded semiannually. He wants to withdraw an amount every year for the first six years and to withdraw exactly $1,500 more for the following f..
In 2012, WVU president James Clements’ base salary was $775,000. The head football coach, Dana Holgorsen’s base salary was approximately $2.4 million. Why is the football coach paid so much more than the president? Should the head football coach be p..
Write a program that passes an int[8] array in such a way as to assure the values in the array are not changed.
What effects would each of the following have on aggregate demand or aggregate supply, other things equal? In each case use a diagram to show the expected effects on the equilibrium price level and the level of real output, assuming that the price le..
A mutual stock fund has grown at a rate of 16% compounded annually since its beginning. if it is anticipated that it will continue to grow at this rate, how much must be invested every year so that $60,000 will be accumulated at the end of 12 years?
Arkensland is a highly industrialized countr. Prices have been steadily increasing over the last few years and inflation reached an all-time high of 8 % last year. Following this, the central bank came under pressure to reduce inflation to least 4 % ..
The production function is given as f(L, K) = L2 K . In the short run, K is fixed at 1. The price of L is $3 per unit and price of K is $5. In order to produce 100 units as a desired output, how much is the total cost? What is the price elasticity of..
The Board of Schmeckt Gut (energy bar product) wants to convince the Government of Industria that a Free Trade Agreement with Atollia would be beneficial for Industria’s economy. If we assume that a free trade agreement with Atollia would indeed incr..
Please give an example of research question that employ probity or legit model as an analysis method! Mention the dependent variable (Y) and the independent variables (X). What is your expectation on the sign of each X's coefficient?
National Bureau of Economic Research. CIA's World Factbook. Organizaiton for Economic Co-operation and Development.
Compute the minimum rate of interest, and, therefore, the risk premium, at which you would lend $1000 on the informal market. Suppose you are risk-neutral.
Two clinics want to merge. The price elasticity of demand is -0.20, and each clinic has fixed costs of $60,000. One clinic has a volume of 7,200, marginal costs of $60, and a market share of 2 percent. The other clinic has a volume of 10,800, margina..
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