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Between 2014 and 2015, the quantity of cars produced and sold decreased by 20%. During the same period, the price of cars increased by 5% and the cost of gasoline increased by 20%. We know that the cross elasticity of demand of gasoline is -0.3.
a) Compute the impact of the gasoline price increase on the demand for cars.
b) Compute the price elasticity of demand for cars during this period.
assuming the the merger in the automotive industry faces some threats and that the industry decides on self expansion as an alternative strategy, describe the additional complexities that would arise under this new scenario of expansion via capita..
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The after-tax cost is 6.5%, the cost of preferred stock is 10%, cost of common equity (in the form of retained earnings) is 13.5%. Compute Global technology's weighted average cost of capital.
Illustrate what are the short-term and long-term implications of states disagreeing on recognizing marriages performed in other states.
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Using diagrams for both industry and a representative firm, illustrate competitive long run equilibrium. Assuming constant costs, employ these diagrams to demonstrate
1. Assume the economy is operating below the full employment level of output: 1. Congress votes to decrease business taxes on all small businesses in the United States. Using a correctly drawn AD/AS graph, show and explain how this change will affe..
If there are internal economies of scale, why would it ever make sense for a firm to produce the same good in more than one production facility Explain why trade liberalisation has the same effect on an economy as an increase.
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