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Question: The Apex Company sold a water softener to Marty Smith. The price of the unit was $350. Marty asked for a deferred payment plan, and a contract was written. Under the contract, the buyer could delay paying for the water softener if he purchased the coarse salt for recharging the softener from Apex. At the end of 2 years, the buyer was to pay for the unit in a lump sum, with interest at a rate of 1.5% per quarter-year. According to the contract, if the customer ceased buying salt from Apex at any time prior to 2 years, the full payment due at the end of 2 years would automatically become due. Six months later, Marty decided to buy salt elsewhere and stopped buying from Apex, whereupon Apex asked for the full payment that was to have been due 18 months hence. Marty was unhappy about this, so Apex offered as an alternative to accept the $350 with interest at 10% per semiannual period for the 6 months that Marty had been buying salt from Apex. Which of these alternatives should Marty accept? Explain.
Confirm your quantity and price results algebraically and calculate the price elasticities of demand in each market and discuss these in relation to the prices to be charged in each market.
Consider a $500,000 initial investment, annual savings of $92,500 for a 10-year period, a salvage value of $50,000, and a 10 % MARR applies. Using a spider plot, examine how sensitive the annual worth for the investment is to errors in estimating ..
Now suppose that the government subsidizes electricity for farmers, Calculate the resulting steady-state levels of x and y under myopic behavior
The biggest gains in exports, imports, employment, and wages all occurred during the 1990s which was one of our greatest periods of economic growth.
Explain the importance of the ceteris paribus or "other-things-equal" assumption - example of a positive economic statement and one example of a normative economic statement.
Explain why the marginal product of the second and third workers might be higher than the first. Why might you expect the marginal product of additional workers to diminish eventually?
People who want to work but have stopped looking for work because they could not find jobs after actively searching are called
The oil price shocks of 2006-2009: Between 2006 and the middle of 2008, oil prices rose sharply - from around $60 to more than $140 per barrel.
When the demand of a product increases ______? What important concept is illustrated with the Production Possibilities Frontier (PPF)? Everything else held constant, when the price of a product increases _______?
why does a consumers price elasticity of demand for a good depend on the fraction of the consumers income spent on the
The initial cost of a pickup truck is $12,975 and will have a salvage value of $3,622 after five years. Maintenance is estimated to be a uniform gradient amount of $134 per year, with zero dollars for first year maintenance.
Each year, public schools are rewarded with bigger budgets for achieving a rating of “excellent” or “recommended” and are punished for rating “needs improvement.”
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