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Assume that the demand for luxury cars is price elastic. Based on this assumption, explain why each of the following statements is true or false.
a) When the price of luxury cars increases, the number of luxury cars purchased increases.
b) The percentage change in the price of luxury cars is less than the percentage change in the quantity demanded.
c) If average family incomes fall, sales of luxury cars will decrease.
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After the merger, Safeco/Risco would have a corporate WACC of 11%. Therefore, it should reject Project X but accept Project Y.
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Suppose hockey skates sell in Canada for 165 Canadian dollars, and 1 Canadian dollar equals 0.71 U.S. dollars. If purchasing power parity (PPP) holds, what is the price of hockey skates in the United States?
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what is the present value of 15500 to be received 12 years from today? assume a discount rate of 7.5 compounded
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