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Paul consumes only two goods, pizza (P) and hamburgers (H) andconsider them to be perfect substitutes, as shown by his utilityfunction: U(P,H) = P+4H. The price of pizza is $3 and the price ofhamburger is $6, and Paul's monthly income is $300. Knowingthat he likes pizza, Paul's grandmother gives him a BD giftcertificate of $60 redeemable only at Pizza Hut. Though Paul ishappy to get this gift, his grandmother did not realize that sheshould have made him exactly happy by spending less than she did.How much would she have needed to give him in cash to make him justas well off as with the gift certificate?
Therefore each flight has the potential to carry 80 additional pounds of mail. You have been retained by Express to provide them with the lowest price per pound they could charge for each of the 80 pounds of unused capacity without reducing their ..
Suspose kate is an avid reader and buys only comic books. Kate deposits 2000 in a bank that pays an annual interest rate of 20%. At the time of her deposit a comic book cost $10.00. Intially, the purchasing power of kates $2,000 deposit.
In 1981, a Boston-based gas station owner set the highest gasoline prices in the nation. During that summer, he charged $1.69 per gallon for unleaded gas during the daytime and $2.59 per gallon at night, when other downtown gas stations were close..
A certain town has yearly exports that total $40 million. It has no imports. The town's marginal propensity to consume residence expenditures from their income is 0.15 The town's marginal propensity to spend on other things is 0.65
How much can Wells Fargo lend to developer who will repay the loan by selling first 6 view lots out of 13 lots at $190,000 each 2 year from now? Assume the bank will lend at a nominal 14% per year, compounded semiannually.
If demand is represented by Qd = 50 -.5P +.005I where I is income and I=$50,000 and supply is represented by Qs = 100 +.4P - 2W where W is wages and W=$15.00. a) Compute the equilibrium price and quantity where wages=W=$15.00.
Cash Flow A B C Initial cost $15,000 $27,500 $22,500 O & M costs / year $ 1,600 $ 375 $ 1,100 Annual cost savings $ 7,000 $ 9,500 $ 9,000 Salvage value $ 3,000 $ 7,250 $ 4,500 Using incremental rate of return analysis, determine which alternative ..
in the keynesian cross, the consumption function is c=200+0.75(Y-T). planned investment is 100, govt purchase and tax are both 100. a)graph planned expenditure as a function of income. b)what's the equilibrium level of income.
You enroll in a thrift plan in which you are allowed to contribute 8% of your pretax salary per year. The company contributes an additional 6%. Your starting salary is $62,500 and you can expect annual increases of 3.5%. Use an interest rate of 7...
You enroll in a thrift plan in which you are allowed to contribute 8% of your pretax salary per year. The company contributes an additional 6%. Your starting salary is $62,500 and you can expect annual increases of 3.5%.
Assume that the officials in Ecoland have compiled the following information about their economy for last year: The government uses the following equation for the investment function: I = 3,300 - 100r Where r = equal to Ecoland's real interest rate.
U.S. Steel is planning a plant expansion that is expected to cost $13 million. How much money must the company set aside now in a lump-sum investment to have the money in 2 years Capital funds earn interest at a rate of 12% per year, compounded co..
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