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Would you expect the price elasticity of demand for cars to be more price elastic or more price inelastic than the price elasticity of demand for 2015 model year Subaru Outbacks? Fully explain why.
Calculate the price elasticity of demand between two points on a given hypothetical demand curve. Point 1 will have a price that is $9.20 and a quantity of 156. Point 2 will have a price that is $9.40 and a quantity of 145. Show all components of the calculation in a very concise format.
A few years ago we became aware that disposable diapers were a major item being put into U.S. landfills. Some communities discussed banning disposable diapers from their landfills. There were protests from parents groups whose members found disposabl..
Recently I began thinking about why the use of tokens for money is so popular. In casinos, I think that it is well justified, but there are some cases when those arguments are not useful. For example, why would an amusement park make you buy tickets ..
A facility for a production plant can be purchased for 155,000 with a down payment of 25,000.
Select a good that you are familiar with. What are the factors that shift the demand curve for this good? What are the factors that shift the supply curve for this good?
explain a diagram for an industry in a developing country where infant industry protection might be a good idea. What are arguments for and against governments in developing countries giving infant industry protection to new industries.
Suppose a ?rm’s cost function is given by C(Q) = Q^2 + 100 over the interval [0,10]. Sketch this function and then draw a secant line that connects the points 1 and 5. What is the range of this cost function? Is this function concave or convex? How d..
There are two types of drivers on the road today: Speed Racers have a 5% chance of causing an accident per year, and Low Riders have a 1% chance of causing an accident per year. Suppose an insurance company knows with certainty each driver’s type. Wh..
You are buying a bond at a quoted price of $892. The bond has a 7.5 percent coupon and pays interest semi annually on February 1 and August 1. What is the dirty price of this bond if today is April 1. Assume a 360-day year.
Assume the operations manager at the company you own prefers to put in low effort rather than high effort. In order the manager to exert high effort, his expected financial gain must be at least $60,000 higher than if he puts in low effort. How would..
You are valuing an investment that will pay you $12,000 the first year, $15,000 the second year, $18,000 the third year, $21,000 the fourth year, $24,000 the fifth year, and $27,000 the sixth year (all payments are at the end of each year). What it t..
Why does a portion of Chinese residents' expenditures on goods and services exported from the United States to China likely add to the earnings of Chinese firms and those firms' managers and workers?
The cafe manager estimates that daily demand for cakes is represented by. What price is the cafe currently charging for cakes? The store manager notices that a nearby store is charging $8.50 per cake, and is contemplating whether to match the price. ..
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