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Suppose that all of the numbered diamonds and spades from a deck of cards (excluding Ace, King, Queen, and Jack) are used to set up a market. The diamonds determine demands, e.g., a 10 represents a buyer with a redemption value of $10. Similarly, the spades determine supply. There are nine buyers and nine sellers, each with a single card. (a) Graph supply and demand, and derive the competitive price and quantity predictions. (b) What is the predicted effect of removing the 3, 4, and 5 of spades.
Jim Vendors is viewing about manufacturing a new type of electric razor for men. If advertise were favorable, he would get a return of $100,000.
A young couple is purchasing a new sport utility vehicle. The price of the new vehicle is $28,300, sales tax is 7.5%, title and registration will cost $105. The dealer is offering a special finance rate of 1.9% APR for 36 months (compounded monthly)...
Using the sum-of-years digit method of depreciation, find the amount of depreciation to be charged off each year on an RV Camper purchased byan Account in Firm. The RV Camper has a cost of $95,000, and estimated life of 5 years, and a trade-in/scrap ..
"Looking ahead to next year, the future looks very bleak indeed." The speaker was Sonia Rice, president of Consumer Goods, Inc. "Revenues are projected to be down by 7.3% and our costs (especially fuel and raw materials) are increasing monthly. What ..
You are the manager of a supermarket, and you know that the income elasticity of peanut butter is exactly −0.5. Due to the economic recession, you expect incomes to increase by 10 percent next year. How should you adjust your purchase of peanut butte..
A local landfill currently charges $100 per half ton load of waste to dump. The marginal costs to the landfill of operating the dump are about $60 per half ton load of waste. Assuming the landfill pricing is dynamically efficient, what is the MUC of ..
Show how length of stay and seasonal demand stability might be important to a recreational tourism destination. What economics conditions made the growth of tourism possible in the nineteenth century?
Firms in perfect competition will leave the industry if they
This week there was news that some prices are rising. I heard that in some countries where corruption is high the prices are also higher. I wonder if there is causality or just both at same. It would be interesting to find some material to support if..
Derive the equation describing labor demand in this economy as a function of the real wage and the capital stock. The economy has 27,000 units of capital and a labor force of 1,000 workers. Assuming that factor prices adjust to equilibrate supply and..
A commuter drives 10 miles on a highway at 60 miles/hour, and then drives 10 miles on local streets at 15 miles/hour. Use the harmonic mean to find the average speed of the trip.
Explain how does the price elasticity of demand for corn oil influence the quantity-demanded of corn oil and the Total Revenue earned by sellers of corn oil. Explain, using economic terms, why this is so.
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