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The Acmeville Metropolitan Bus Service currently charges $0.67 for an all-day ticket, and is used by an average of 513 riders a day. The bus company is not earning a profit, but according to their contract with the city, they cannot cut the number of buses on the road. They must therefore find a way to increase revenues. The bus company is considering increasing the ticket price to $0.89. The marketing department's studies indicate this price increase would reduce usage to 236 riders per day. Calculate the price elasticity of demand for bus tickets to determine if the bus company should increase price or decrease price to increase revenues.
If the Federal Reserve has set the risk-free interest rate at 8 percent, Illustrate is the proper current cost of this investment.
If consumer incomes increase, the demand for product Y:
It trades with a country that produces only cheese, and the currency of that country is crowns. The real exchange rate, e, equals 5 wedges of cheese per bottle of wine. The foreign price level is 20 crowns per wedge of cheese, and the domestic money ..
q.prepare a word document that addresses each of the following questions as well as submit to your instructor.some
Suppose that two recent studies conclude that increased fiber in the diet does not reduce the risk of developing colon cancer as was previously thought. The likely result will be that the:
Boris budgets $9 weekly for his morning coffee with milk. He likes it if it is prepared with 4 parts coffee, 1 part milk. (Milk and coffee are perfect complements here). Coffee costs $1/oz, and milk $0.5/oz. Draw his budget constraint and indifferenc..
You make monthly deposits of $1,000 in a bank starting at the end of month 1 and lasting 5 years (the last deposit is at the end of month 60). What is the future value of these deposits right after your last deposit? Assume the nominal annual interes..
Social entrepreneurs generally attempt to create win-win situations and make the world a better place. Is making the world a better place ethically incompatible with making a profit? Why, or why not? Can you identify a firm with a high degree of focu..
A developing nation faces inflation rates of 2% one year, 5% in the second year, and 12.5% in the third year. Find the geometric mean of the inflation rates.
Identify and describe an incentive conflict at your business or somewhere you have worked or attended school. What would you change to resolve the conflict?
Explain how could ABC use interest rate swaps to reduce the exposure of its cost of debt to interest rate movements.
Over the past year the inflation has been 10%. The price of a used Ford SUV has fallen from $6,000 to $5,000, or 16.6%. By what percentage has the real price fallen?
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