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Q. Assume that PY increases by 15%, what percentage effect on quantity demanded of product X could be expected?
Compute the income elasticity of demand for product X when I= $13,000. How could we categorize product X? Explain that do you consider commodity X a cyclical or non cyclical good? Explicate why.
Do you consider product X a luxury good or necessity? Explicate why.
Suppose the economy is in a recession and per capita disposable income is expected to decrease by 5%, then what percentage effect on sales would you expect to take place?
If MMM's capital structure consists of 25% debt and 75% equity, stated in total funds, what is the WACC break point that is associated with retained earnings
Why anyone would pay a positive price for a CBOT or NYSE seat and what this price represents. Second, explain why the seat values have changed so much in recent months.
Explain the paradox of why new cars usually lose a large fraction of their market value the moment they are driven from the showroom. Identify the economic principle that explains this paradox.
Elucidate what type of returns to scale does this technology represent.
Illustrate what cost as well as quantity will result once the patent expires and competition emerges in this market.
If you were a supplier to the furniture producer, would have chosen to see the analysis performed in physical sales units rather than dollars of revenue.
The percentage effect which increase in output will have on the profit made from producing and selling commodity Alpha will be.
Assume that you own a 10-acre plot of land that you would like to rent out to wheat farmers.
Rain spoils the strawberry crop, the price raises from $4 to $6 a box, and the quantity demanded decreases from 1,000 to 600 boxes a week
The price elasticity of demand for Royal Crown Cola is equal to the price elasticity of demand for soft drinks in general It is invalid to make inter product elasticity comparison
Compare and contrast inflation and deflation. What are some of the damaging effects that each has on an economy.
Explain how it will affect the number of employees you schedule. All other things being equal, what will happen to prices of the Galaxy and the iPhone.
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