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If price of motor vehicles rises, what will happen to the demand of fuel oil? In which direction the demand curve for fuel oil will shift with a rise in price of motor vehicles?
In city B, the value of an apartment also falls the further it is from the business center, yet the fall goes down gradually. For example, an apartment one kilometer away will lose 20 percent of its value and an apt 2 kilometers away will lose onl..
where a > 1. In addition assume that the firms target own profit maximization, compete (simultaneously) in quantities and have marginal costs equal to c1 = c2 = c. Assume that 1 > c > or equal to 0. Describing the necessary mathematical steps, and..
The market supply and demand function for good X are shown below: X^s=S(P,W)=30P-W X^d=D(P,Y) =6Y/P Where p=price, x=quantity, W= labor cost, y= consumer total income. Find elasticity n(P*,Y) and evaluate it numerically at the equilibrium values a..
First bank has total deposits of $2,000,000 legal reserves of $220,000. a. If the reserve requirement is 10 percent, what is the maximum loan that First bank can make, and what is the maximum increase in the money supply based on First bank's rese..
The price elasticity of demand for imported whiskey is estimated to be -0.20 over a wide interval of prices. The federal goverment decides to raise the import tariff on foreing whiskey, causing its price to raise by 20%.
If the current stock of capital is fixed at 250 units, how many full-time workers should the firm employ if the weekly salary of each full-time worker (w) is $400 per week Compute the firm's level of output and profits per week in this short-run e..
Chez Henri is a restaurant chain that operates in 40 different cities. It hired an economist to estimate the factors affecting the demand for its sales. The following equation was estimated using cross sectional data from each of its 40 restaurant..
Suppose that the velocity of money is not constant but is growing at 1% per year. Real GDP is growing by 5% per year. If the central bank wants to reduce the rate of inflation to 3%, what must be the new rate of money growth? If the real rate if r..
My brother has a house worth $400,000 and he has no mortgage as it is paid off! His utility bills and insurance and maintenance cost him about %500 per month and property taxes another $500 per month. He claims it only costs him about $1000 a mont..
The cost associated with maintaining rural highways follows a predictable pattern. There are usually no costs for the first three years, but maintenance is required for restriping, weed control, light replacement, shoulder repairs, etc.
Consider the following sample of nine wait times measured in seconds at a drive through coffee shop. The population mean and standard deviation are 100 and 20 respectively. 125 95 66 116 99 91 102 51 110 a. What is the size of the sampling error i..
Five members in a family own a farm in rural Mexico. 2 people = $1600 TFO. 3 people =$3000 TFO. 4 people = $2300 TFO and 5 people = $2500 TFO. Each member has the opportunity to migrate to the nearest city where there are two different types of job..
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