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The short-run elasticity of demand for a consumer product is measured from NPD data at epsilon = -2.9.
What is the expected unit sales increase to result from a 10 percent price decrease?
If the contribution margin for the value chain is 60 percent, what is the volume hurdle for a 10 percent price decrease?
Should the value chain expect a 10-percent-off sale to improve its profits?
The financial plan is:
To extract the seller’s surplus, a buyer should design a bulk order offering the seller ________ up to the desired production.
What do you think will cause market fluctuations over the next few years as the economy struggles to recover? What areas of the economy should be closely watched as indicators of future activity?
Since 1979, low income recipients have been given food stamps without charge. However before 1979, people bought food stamps at a subsidized rate. For example, to get $1 worth of food stamps a household paid about 20? (the exact amount varied by hous..
Consider a town in which only two residents, Carlos and Deborah, own wells that produce water safe for drinking. Carlos and Deborah can pump and sell as much water as they want at no cost. For them, total revenue equals profit. The following table sh..
One component of the Patriot Act of 2006 was the "Combat Methamphetamine Epidemic Act", which prohibited the over the-counter sale of cold medicines that contain pseudoephedrine (which is commonly used to make meth). Ceteris paribus, what is a likely..
During droughts, cities often impose water use restrictions on consumers. Suppose Rusalka has preferences for Water (W) and other goods (X) given by the utility function: U(W, X) = WX. Suppose the government imposes a quota limiting water use to a ma..
Suppose that jon only consumer two goods X and Y .the price of X is $2 and the price of Y is $4 jon has $40 to spend. Write down jon budget constraint. Draw a graph of the budget constraint.Be sure label the maximum quantity of X and the maxium quant..
In 2008, the government initiated an $8,000 tax credit for first-time homebuyers in an effort to stimulate the housing market. This means that all first-time homebuyers in 2008 were eligible to take an $8,000 deduction from their taxable income for t..
Assume a new bank has just opened for business. It has deposits of $1,000,000 and a required reserve ratio of 15 percent. How much can this bank lend and why?
There are four individuals I , II, III and IV in a society with a demand for the public good given by Q = 100 – P, Q = 300 – P, Q = 400 – P and Q = 150 - P respectively. If the marginal cost of providing the public good is constant and is equal to $7..
Explain the argument that lower corporate tax rates can increase tax income in Kenya. Reflect on the Laffer curve in your explanation.
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