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The World of Videos operates a retail store that rents movie videos. For each of the last 10 years, World of Videos has consistently earned profits exceeding $42,000 per year. The store is located on prime real estate in a college town. World of Videos pays $2,400 per month in rent for its building, but it uses only 50 percent of the square footage rented for video rental purposes. The other portion of rented space is essentially vacant. Noticing that World of Videos only occupies a portion of the building, a real estate agent told the owner of World of Videos that she could add $1,750 per month to her firm’s profits by renting out the unused portion of the store. While the prospect of adding an additional $1,750 to World of Videos’s bottom line was enticing, the owner was also contemplating using the additional space to rent video games. What is the opportunity cost of using the unused portion of the building for video game rentals?
Determine whether each of the following would cause a shift of the aggregate demand curve, a shift of the aggregate supply curve.
Poornima and Valerie are considering contributing toward the creation of a botanical garden. Each can choose whether to contribute $300 to the botanical garden or to keep that $300 for a cell phone. Since a botanical garden is a public good, both Poo..
If a single bank faces a required reserve ratio of 20%, has total reserves of $500,000, and checkable deposit liabilities of $400,000, what is the MAXIMUM amount of money this bank could create (add to the money supply)?
Recently, a bank was trying to decide what fee to charge for "expedited payments"—payments that the bank would transmit at a faster speed to enable customers to avoid late fees on cable TV bills, electric bills, and the like.
Suppose Uncle Nacho sells shares of Time Warner stock for $20,000 and puts the proceeds from the sale into his money market mutual fund account. What happens to the value of M1 and to M2?
Illustrate what will be the effect on the level of checkable deposits.
q1. the supply is nerf balls qs -100000 8000p and the demand is qd 140000 2y - 7000p where q nerf balls per month
Assuming the most typical shapes of the demand and supply curves, which of the following could lead to an increase in the current equilibrium price for personal computers?
Using a budget constraint and a map of indifference curves, show graphically and explain whether the following statement is true. If all prices double and the consumer's income also doubles, there will be no change in the equilibrium bundle of goods ..
Suppose the interest rate on 6-month treasury bills is 7 percent per year in the United Kingdom and 4 percent per year in the United States.
Calculate nominal GDP in 2006 and in 2007 and the percentage increase in nominal GDP between 2006 and 2007.
Based on the information on the previous graph, you can tell that ______ (one, two, three, four or five) consumers will buy Blu-ray players at the given market price, and total consumer surplus in this market will be ________ $?
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