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There has been much discussion over whether marijuana should be legalized for consumption beyondmedical use. Assume that if it becomes legal the price will be cut in half. Given that Frank suggests theestimate of the price elasticity for marijuana is -1.0, what would you expect to be the change in marijuanausage? Because that legalization would in some sense bring an entirely new market segment into thelegal market arena, why or why not would you have a high degree of confidence in your change in usage estimate based on that elasticity?
U.S. policy to increase the miles per gallon (mpg) of new cars is to mandate an average mpg for cars sold by U.S. manufacturers. In many countries within the European Union, the policy is to tax gasoline so that the price per gallon at the pump is st..
Bank has the following balance sheet. Reserves = $760, Loans = $7,800, T-bills = $560, Deposits = $8,000, and Debt = $800. Reserve requirement is 8%. How much excess reserves the bank holds?
As oil prices rose during 2006, the demand for alternative fuels increased. Ethanol, one alternative fuel, is made from corn.
Third Party Beneficiary. David and Sandra Dess contracted with Sirva relocation, LLC, to assist in selling their home. In their contracts, the Desses agreed to disclose all information about the property on which Sirva and other prospective buyers ma..
Due to the changing environment and external triggers, contingency planning is necessary. What qualities make a future issue a trigger? Consider you are on the strategic planning team for a soft drink company. Here is your company’s future trigger: m..
what is the wage, quantity hired, wage plus employer taxes and wage minus employee taxes if employees pay a $6 tax?
How to create a business plan? The new business proposals MUST be related to management. In one Word document, you will submit a 1 page proposal on each topic stating rationale and why it is a relevant topic on which to write the capstone business pl..
First, use a T-account to show how a $100 deposit affects the balance sheet. Separate the funds into required reserves and excess reserves using a required reserve ratio of 0.1. Second, demonstrate what happens to the balance sheet when the bank loan..
When transaction costs are low enough, efficient resource allocation will follow regardless of the particular assignment of property rights. When transaction costs are high enough, efficient resource allocation requires assigning property rights to t..
Analyze a two-period model for the market of computers in which two firms operate. Firm 1 only produces in period 1 and is endowed with an old technology providing a quality level vO to consumers. Firm 2 is a potential entrant in period 2 and it is a..
Briefly explain whether you agree with the following statement: I recently read that more than half of the money issued by the government is actually held by people in foreign countries. If this is true, the United States is less than half wealthy as..
You have begun saving for retirement. You will initially save 2500/year and plan to increase your contributions by 5% per year A) If the retirement plan has made 8% per year how much will you have saved in your account after 38 years? B What will you..
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