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A developer of a housing complex on an off-shore island is considering building a pipeline connecting to the fresh water supply system of the government in replacing the existing desalination plant. The cost of fresh water produced from the desalination plant is about HK$ 10/m3 whereas the price of fresh water supplied from the government being HK$ 4.58/m3 . The cost of the pipeline is estimated to be HK$ 1,000,000. Assuming the daily use of water is 240 m3 calculate the number of years of payback of the pipeline if the interest rate is set at 10% p.a.
Assume that the demand for a product X is heavily influenced by the price of another product Y (Py), and the income of consumers (I). The cross-price elasticity of X with respect to Y is exy = 1.25, and the income elasticity is eI = 2. Suppose now Py..
Suppose for every dollar change in household wealth, consumption expenditures change by $0.05. If real household wealth declines by $45 billion, potential GDP is $120 billion, and the multiplier effect for the first year after an expenditure shock is..
Explain how many tons of coffee does the United States import. If the world price of a computer is $500, what is the world price of a ton of coffee.
Explain how does trade affect the production possibilities frontier. Illustrate what other factors can expand the production possibilites frontier.
Ryan expects to deposit $1,000 now, $3,000 four years from now, and $1,500 six years from now in an account that is earning 12% per year compounded semi-annually through a company-sponsored saving plan. What amount can he withdraw ten years from now?
A car dealership typically determines a distinct price for a car for each customer. This is an example of what type of price discrimination? Why is the dealership able to carry out this type of price discrimination?
If the economy is facing rising levels of inflation, what would the Fed do with its three monetary control tools? Why does the Fed buy government securities during a recession?
The demand for a monopolist's output is 2,000 / (p+1)2 where p is the price she charges. At a price of 3, the elasticity of demand for the monopolist's output is:
Please describe the four growth theories covered, and for each list at least one implication for development to the extent the theory is correct. Which model seems most relevant to you and why?
A newspaper recently lowered its price from $0.50 to $0.30. As it did, the number of newspapers it sold increased from 240,000 to 280,000 (4 points) a) What was the price elasticity of demand for this newspaper (Arc/ mid-point formula)? What was the ..
What is the best age to start receiving Social Security retirement benefits? To help make that decision, use the Social Security Break-Even Calculator available at the web-link posted to compare the cumulative Social Security retirement benefits paid..
Corruption, the Merriam Webster dictionary (n.d.) defines corruption as the "impairment of integrity, virtue, or moral principle, or inducement to wrong by improper or unlawful means (as bribery). Many argue that corruption is a major problem in busi..
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