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During the week of February 9-15, 2001, the U.S. rose market cleared at a price of $1.00 per stem, and 4 million stems were sold that week. During the week of June 5-11, 2001, the U.S. rose market cleared at a price of $0.20 per stem, and 3.8 million stems were sold that week. From this information, what would you conclude about the price elasticity of supply in the U.S. rose market?
Suppose the Canadian dollar (C$) price of one British pound is C$2.12. A hotel room in London costs 120 pounds, while a similar hotel room in Toronto costs C$250. In which city is the hotel room cheaper, and by how much
A machine has an initial cost of $500,000, and was estimated to have a salvage value of $30,000 at the end of its 7 years useful life. The machine is expected to generate annual net savings of $125,000. A loan of $200,000 at 7% interest will help ..
Consider a Cournot model where the market demand is P = a - qA - qB. Both firms have constant average and marginal cost of c. Demand, however, is uncertain: it is high (a = aH) with probability f and low (a = aL) with probability 1 - f.
Tad's bait shop has a monopoly on the bait market at Sanderson's Lake. The demand curve for bait is QD = 56 - 8P -> P = 7 - 18 QD. This implies the marginal revenue function is: MR(Q) = 7 - 14 Q. Tad has two employees he can use to search for bait..
Describe the successive loss of information as the presentation changed from ratio to nominal.
. Graph tax revenue as a function of the tax rate both for ϒ = ½ and ϒ = 1. Discuss the implications of this Dupuit-Laffer curve
Illustrate this on an AD-AS diagram, assuming that the government changes its purchases by exactly the amount necessary to close the gap.
Do you think China's experience in raising its standard of living (output per person) provides a model for developing countries to follow?
What is meant by the term, path dependency and discuss how path dependency has effected the development of two major Australian economic institutions.
laboratory equipment sells for $75,000. The manufacturer offices financing at 8% with annual payments for the 4 years for the $50,000 of the cost. The salesman is willing to cut the price by 10% if you pay cash.
A firm purchases goods on credit worth $1,250. The same firm pays off $1,000 in old credit purchases. An investment is made via the purchase of a new facility and equity is issued in the amount of $3,000 to pay for the purchase.
If the CPI was 110 last year and is 121 this year, what is this year's rate of inflation? What is the "rule of 70" How long would it take for the price level to double if inflation persisted at (a) 2, (b) 5, and (c) 10 percent per year
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