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Finally, suppose sellers can perfectly observe their cars' types, while buyers can identify lemons, but cannot tell peaches apart from melons.
1. Will it now be possible to trade different cars at different prices?
2. For what range of values of ) will there exist a price at which both peaches and melons are traded?
In an economy where the equilibrium rate of return on assets is 5 per cent per year, suppose there are three assets A, B and M. A is an acre of land and has an annual cash flow of $50 (received at the end of the year) and is not expected to appreciat..
The government can improve economic efficiency by forcing individuals and firms to participate in the market. Explain two situations when government intervention is beneficial.
What is your suggestion to the Board to ensure a smooth introduction of the Schmeckt Besser energy bar? Your answer should be related to the different market.
Should Congress be more descriptively representative? How could this be ensured? Would it threaten democracy if representatives of particular demographic groups were favored in elections in order to bring about more descriptive representation?
ENTREPRENEURSHIP Discussion- What is your small business or entrepreneurial idea? Why do you believe that this is a functional idea for a new business?
Assume the random variable x is normally distributed with a mean u=80 and a standard deviation o=4. Find the indicated probability.
The citizens of Springfield love donuts. Due to health concerns, the city has decided to make citizens responsible for paying a per donut tax of 50 cents. a) On the graph, please shift the appropriate curve to illustrate the effect of the tax.
Lumber and brick are substitutes in home construction. Consider the market for bricks depicted in the graph. Suppose the price of lumber increases due to new re
In 2001, the economy of the United Kingdom exported goods worth £192 billion and services worth another £77 billion. It imported goods worth £225 billion and services worth £66 billion. Calculate the U.K. merchandise trade deficit for 2001. Calculate..
What are some major business disruptions in the world with a short description of this disruption and their impact on the businesses.
Choose any one product that YOU hold an inelastic demand and any one product that YOU hold an elastic demand. Explain your reasoning to why your elasticity differs. Why may someone else hold a completely different elasticity?
Why manufacturer guarantees the computer for one year only. The cost of the extended warranty is $150. Analyze this proposition using the concepts you learned in the module on risk analysis.
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