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A recent report by the Centers for Disease Control looked at the relationship between the price of beer and the incidence of new cases of STD’s. The report concluded that a beer tax increase of $.20 could reduce overall STD rates by 8.9%. Assume that a six pack cost $5.90 before the price increase. Calculate the cross price elasticity between beer and STD’s. What is the sign of this cross-price elasticity? According to your estimate, are beer and STD’s compliments or substitutes? Does your answer make sense? Explain.
Kim owns all 100 shares of common stock in GBZ Co. She has decided that she needs to raise $10,000 in new capital this year. She is trying to decide between two alternatives that are open to her. One is to issue a $10,000 bond, paying 10 percent inte..
In the late 1990's, car leasing was very popular in the United States. A customer would lease a car from the manufacturer for a set term, usually two years, and then have the option of keeping the car. Why was the manufacturer losing money on this pr..
Compare and contrast two events motivated by incentives, one where the self-interested behavior was good for society and the other where it was bad.
lisa has a linear budget constraint and typical convex indifference curves associated with food and "all other goods." suppose that lisa is given $50 worth of food stamps, which can only be used for food, Draw lisa's budget constraints, with an witho..
Determine the depletion charges using the percentage depletion method for the first year only for a coal mine. The applicable rate for the percentage depletion method is 12%. Cost to acquire mine rights = $50,000
Which of the following describes the expected outcome of expansionary monetary policy in the short run?
Assuming Mr. Delaney decides to keep the body shop, and the consultant reports that it is feasible to raise prices, should Mr. Delaney do so. If he does, illustrate what general guide can you suggest as to how much price should be increased.
q1. a discount store has a special offer on dvd players and lowers their price from 150 to 100. assume the store
If the banking system has a required reserve ratio of 10%, then the money multiplier is: ______ If Bank A receives a $10,000 deposit and the reserve requirement is 10%, how much does Bank A have available to loan out? __________
After doing a Chi-Square test ,you decided that failures are normally distributed ,with mean failure of 50,000 miles and a standard deviation of 10,000 miles. Concluder eliability of tires.
We would like to estimate the need for physicians in a country. What approach would you follow to estimate the need? Briefly describe the method you are proposing (describe one method only) and discuss some potential limitations of the approach.
Suppose the exchange rate between the U.S. dollar and the Mexican peso was $1 = 5 pesos. A can of Pepsi sells for $2 in Boston and 12 pesos in Mexico City.
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