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Q. As manager of City Racquet Club, you must determine the best price to charge for locker rentals. Suppose the marginal cost of providing lockers is zero. The monthly demand for lockers is estimated to be Q = 100 - 2P, where P is the monthly rental price and Q is the number of lockers rented per month.
a) What price would you charge?
b) How many lockers would you expect to rent
Elucidate what would be the immediate and long run effects on c, k, and y. Explain by drawing the path of these variables. Consider that you impose the new saving rate.
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When Betsy goes to make her list for tomorrow she is upset that she didn't get everything done. In a well-written paragraph explain the economics behind her inability.
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