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A hot dog vendor faces a daily demand curve of Q=1800-4p, where P is the price of a hot dog and Q is the number of hot dogs purchased each day.
If the vendor has been selling 300 hot dogs each day, how much revenue has he been collecting?
What is the price elasticity of demand for hot dogs?
The vendor decides that he wants to generate more revenue. Should he raise or lower the price of his hot dogs?
At what price would he achieve maximum total revenue?
Imagine the economy starts off at the steady state, with m=v=1 and b=1/2; additionally, suppose that the Fed's infaltion target (π-bar) is 1% and that the real federal fund rates (r-bar) is 1%. In period 1, political uncertainty causes a negative AD ..
Is globalization, which blur physical boundaries, and international organizations, which can possibly impact political sovereignty, a detriment to national independence or a growing indication of increasing global cooperation?
Use only IMF or World Bank data for international comparisons. What is U.S. nominal GDP at the end of 2014 (4th quarter)? What is U.S. real GDP at the end of 2014 (4th quarter)? What is the base year used in calculating U.S. real GDP? Since 1998, in ..
Critically evaluate the following statement: Playing the stock market is like gambling. Such speculative investing has no social value, other than the pleasure people get from this form of gambling.
Machine A costs $20,000 to purchase and is worth $5,000 in 6 years. Machine B costs $10,000 to purchase and is worth $2,000 in 4 years. Assume that these machines are needed for 24 years and can be repurchased at the same price in the future. (use 10..
A used car can be kept for two more years and then sold for an estimated $3000, or it could be sold now for $7500. The average annual maintenance cost over the past 7 years has been $500 per year. However, if the car is kept for two more years this c..
q1. at daves current consumption bundle involving positive units in both hot dogs and sodas his marginal utility for
A firm is considering a capital investment. The risk premium is 0.04, and it is considered to be constant through time. Riskless investments may now be purchased to yield 0.06 (6%). If the project’s beta (?) is 1.5, what is the expected return for th..
Assume stock returns can be explained through the following three factor model:
Recessions often are related to the fact that consumers consume less of many of the goods they typically consume. During a recession unemployment typically increases. Relate this behavior to the budget line and indifference curves that we studied.
Expando, Inc., is considering the possibility of building an additional factory that would produce a new addition to their product line. The company is currently considering two options. The first is a small facility that it could build at a cost of ..
The Newspaper reported that insurgents in Saudi Arabia had taken over a major oil refinery. What would you predict would happen to the average price and quantity exchanged in the market for gasoline in Saudi Arabia?
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