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You are the manager of a theater. At present the theater charges the same admisssion price of $8 to all customers, regardless of age. You propose a two-tier pricing scheme: $5 for children under the age of 12 and $10 for adults. You tell your supervisor that your proposal is likely to increase revenues. What must be the price elasticity of demand if your proposal is to achieve its goal of raising revenue? Explain your answer.
A friend borrows $1280 today and promises to pay you back $2190 in 5 years. If inflation is expected to be 3.9% per year during this time, what is the inflation-adjusted rate of return per year? the real rate of return per year?
Success of Employment Applications in Ohio during the Gentleman's Recession and chart displays the ratio of job placements to seekers, for the total of men and women in all five cities, juxtaposed against the business cycle indicators.
q1. assume anna can either wash 12 cars or wax 4 cars every day also bob can either wash 6 cars or wax 3 cars every
If you were the angel investor, what is your certainty equivalent for these two projects? Are you risk-averse, risk-neutral, or risk-lover?
Suppose there is a reduction in the saving rate. Explain what effect this will have on output, output per worker, the rate of growth of output, and the rate of growth of output per worker and consumption per worker
Alice and Betsy are playing a game in which each can play either of two strategies, leave or stay. If both play the strategy leave, then each gets a payoff of $300. For which values of C and/or D is the outcome (leave, leave) a Nash equilibrium?
Let us imagine you are a consultant who has just been hired by a small business owner as an industry specialist. For this discussion you will identify one specific small business that you own, know the owner well or frequent as a customer. As the bus..
You are going to make payments of $100 each year for the next 15 years. For the first five years (1-5) the interest rate is 8% yearly. For years 6-10 the rate is 8% compounded quarterly. For years 11 – 15 the interest is 8% compounded monthly. What i..
Is the current Monetary Policy expansionary or contractionary? Why? What effect doe the Federal Reserve expect this policy to have on the US economy?
Is it possible for Latin American countries to "adopt" the "Asian model of economic growth"? What policies from the East Asian countries could be exportable to other countries and potentially be successful?
If mortgage rates rise from 5% to 10% but the expected rate of increase in housing prices rises from 2% to 9% , are people more or less to buy houses. IRs was lower in the mid-1980s than in the late 1970s, yet many economists have commented that real..
What is the short-run market supply curve? Determine the short-run equilibrium price and quantity in this industry.
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