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Kashian Motors has determined that the price elasticity of demand for two customer segments (A Luxury Car's price elasticity of demand is -1.25 while a Premium Car's price elasticity of demand is -1.65. Based on their expectations of profitability, Kashian realizes the price of a Luxury Car should be $71,500. How much should Kashian charge for its Premium Car?
In the consumption savings model, assume that lump-sum taxes are zero and the utility function is given by U(c, c') = log c + β log c'. Suppose the government taxes on interest earnings i.e. borrowers face interest rate r while lenders face interest ..
Illustrate what do you think would happen to sale and price of DVDs after this.
Suppose there are four major political interests in Hawaii: hotel, agriculture, small business and residents. Which of these (if any) is most likely
Suppose that you have a $15,000 balance on a car loan. The balance accrues interest annually at a rate of 7% of the total unpaid balance at the end of the year. So the balance in one year depends on the current balance, the interest rate, and the pay..
Rent control is an example of a price ceiling. Which of the following problems must be addressed under a rent control program?
Homeland is about to join Furrinerland in a free-trade area. Before the union, Homeland imports 10 million DVD recorders from the outside world market at $100 and adds a tariff of $30 on each recorder. How much extra imports would hae to be demanded ..
Assume your salary is $35,000 in 1995 and $60,000 in 2035. If inflation has averaged 2% per year, what is the real or differential inflation rate of salary
List three businesses that can exist today, because of the World Wide Web that could not have existed before the advent of this technological communication system.
A local community bus service, the only bus service in the market (i.e. a monopoly), charges $2.00 for a one-way fare for all riders. The city council is thinking of raising the one-way fare to $2.50 for all riders. If the city council increases the ..
Explain how would the competitive balance in the American and National Leagues change if baseball owners forced the Yankees to move to Albuquerque, New Mexico.
Let XX be the number of people that order vanilla dip donuts with rainbow sprinkles in a week.
A firm has three different production facilities, all of which produce the same product. While reviewing the firm’s cost data, Jasmin, a manager, discovers that one of the plants has a higher average cost than the other plants and suggests closing th..
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