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Explain with an example how the law may permit something that is ethically wrong.
Samuel and his friends form an LLC. Samuel, through an agreement, promises to contribute personal property to the LLC within a year of the LLC's operation. Samuel passes away in an accident a few days after signing the agreement. Will the agreement still hold? Give reasons in support of your answer.
What is the cross elasticity of demand for pipes and pipe tobacco.
Explain what is wrong with the following statement. "A decrease in supply will lead to an increase in the price, which decreases demand, thus lowering price. Thus, a decrease in supply has no effect on the price of a good."
From number 15 (point B), calculate the price elasticity when a hurricane strikes leading to a 1 lb. decrease in the Good X market. From number 16 (point C), calculate the price elasticity when Americans prefer Good X by 2 lbs. Calculate the price el..
Suppose that during one period, the velocity of money (V) is constant and during another period, it undergoes large fluctuations. During which period will the quantity theory of money be more useful in explaining changes in the inflation rate? Briefl..
Increase in demand and increase in supply will lead to?:
What are the external effects ( externalities ) and why they can lead to inefficiency and government intervention in the market. Why are some government policies to manage externalities effective ( efficient ) while others are inefficient ( inefficie..
Illustrate what does this theory predict about the term structure of interest rates in terms of how the yield of long term bonds are related to yields on a sequence of 1 year bonds.
Consider this natural extension of stripped down poker game we examined in class. Initially each player puts a dollar in the pot. Then each player is dealt; each player’s card is equally likely to be high or low, independently of the other player’s c..
Consider the market for music downloads. The market demand curve is given by P=10-(1/6)Q. Where Q is the number of downloads sold per hour and P is the price per download. Apple is the dominant firm in this market with constant marginal costs MC=6.
The VIU has convinced the public utility commission (PUC) that it is a natural monopoly and thus it has been granted an exclusive franchise to produce electricity. What is the competitive equilibrium in the absence of rate of return regulation? What ..
Groundwater needs to be allocated between two periods, knowing that it will be totally used up in period two. What is the equation for net marginal benefits (NMB) is year 1? What is the optimal allocation of water between the two years? Show all of y..
You are the manager of a monopoly that sells a product to two groups of consumers in different parts of the country. Group 1’s elasticity of demand is -5, while group 2’s is -3. Your marginal cost of producing the product is $40. Determine your optim..
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