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In recent years, about twenty states have passed so-called medical marijuana laws. Typically, these laws permit individuals to lawfully purchase marijuana from licensed stores, providing they have a letter from their doctor recommending its uses. In a number of these states, the price of medical marijuana is observed to be higher than that of the pot sold illegally just down the street. Use the reasoning in this chapter to explain (a) why people would be willing to pay a higher price for the medical marijuana? (b) why it might be misleading to compare the observed price of the medical variety with the observed price of the illegal weed.
Brian is the 99% shareholder, president, and director of Arapine Corp. He frequently uses the corporation credit card for his personal expenses. If Arapine is insolvent and unable to pay its debts, and the corporation’s creditors sue Brian personally..
Review this week's reading A Technique for Architecture and Design and select one of the points the author discusses and explain why it is important.
What are some difficulties with fiscal policy approach? (Budget deficit, crowding out, time lags) Explain. How an expansionary monetary policy can help fiscal policy in stimulating the economy? Explain.
A forward premium for a given currency (say the nominal bilateral exchange rate value of the dollar where S = 80 yen/1 dollar = 80) occurs when the value of the currency as given by the forward spot rate appreciates such as S = 85 yen/1 dollar = 85. ..
What will happen to price of old car taken as an inferior goods whose substitute is new car if income of the people rises.
A company has two divisions. The first produces an operating system for smartphones. The other division manufacturers and markets its own smartphone.
Executives Whose Wives Stay at Home Earn More" was the headline for an article that appeared in the San Luis Obispo Telegram-Tribune
Elucidate the entities affected by industrial regulation in terms of market structure. Explain why industrial regulation affects those entities you identified.
Suppose you are the manager of a restaurant that serves an average of 400 meals per day at an average price per meal of $20. Compute the price elasticity of demand between these two points. Compute total revenue at the three meal prices
The average consumer income is $20,000, and the price of the related good is $1.10. Compute the predicted quantity demanded of X at these prices and income.
What is the present value now (t =0) of the total revenue if the interest rate of 17% per year? specify answer to nearest cent.
A bond that matures in 19 years has a ?$1,000 par value. The annual coupon interest rate is 12 percent and the? market's required yield to maturity on a? comparable-risk bond is 14 percent. What would be the value of this bond if it paid interest? an..
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