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Suppose there is a soda tax to curb obesity. What should a reduction in the soda tax do to the supply of sodas and to the equilibrium price and quantity? Can you show this graphically?
Good People is currently selling beer for $3 per pint. The marginal cost of a pint is $.50. If we raise the price of the beer to $5, what percentage of customers must be maintained to ensure Good People at least stays even with the proposed price inc..
Government policies and regulations in host countries have a major effect on the operations of foreign companies. Which of the following does not reflect a typical regulation? Which of the following statements concerning the effects of fluctuating ex..
Suppose that in January 2014, Joe Biden had borrowed $50,000 from his bank and paid an interest rate of 3%. He paid it back on December 31, 2014. What was the nominal interest C rate that Mr. Biden paid to his bank? (1) What was the real interest rat..
Jenny Wilson is the owner and broker of a real estate company in Montgomery, Alabama. This company is known as Jenny Wilson Realty. Ms. Wilson wants to develop a regression model to explain the selling price (SP) for a house based on the size of the ..
A $1000 face value bond has a 6.85 percent semi-annual coupon and sells dor $980.00. What is the current yield? A 7 percent coupon bond has a face value of $1000 and pays interest annually. The current yield is 6.8 percent. What is the current price ..
show and explain the equation of exchange based upon the velocity of money. Eventually this model was used to develop a demand for money theory. Why was this model not a good predictor of the demand for money?
Since 1996, the Federal Communications Commission (FCC) implemented “local number portability” rules allowing cellular phone consumers to switch cellular providers within the same geographic area and maintain the same phone number.
An investment has just been made to purchase a small CNC lathe of $17,000. This CNC lathe will be used to make ornamental parts for sale. Receipts are estimated at $25,000 per year with costs running $20,000 per year, the salvage value is $3,000 at t..
Elucidate how do the GDP per capitals change after accounting for price indices.
Assume the individuals could either have strict preferences or be indifferent. Construct the table illustrating this rule: Does this rule satisfy the condition of Universal Domain? If not, give a counterexample.
Suppose that in addition to repairing your car, you can also spend money advertising. If you repair your car for hours and spend A dollars advertising, your benefit (the amount you revive when you sell your car) is B(H,A)=220H-H^2+2A. Both H and A ar..
Suppose real GDP is growing by 3 percent, the money supply is growing at 10 percent, the velocity of money is constant, and the real interest rate is 5 percent. (a) What is the current inflation rate and nominal interest rate?
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