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Decide whether your city can support a new Starbuck shop: There are currently 4 Starbucks coffee shops in the city, and each has just enough to serve its customers. The average household income in the city is expected to increase by 10 percent per year for the next few years. Suppose the income elasticity of demand for Starbucks products is 1.25. The population of the city is constant.
1. By what percentage will the demand for coffee increase each year? Show how you got the solution.
2. How soon will the area have enough demand to support a fifth Starbuck? Show how you got the solution.
Illustrate what is repayment amount if you make a cash loan. Illustrate what does cost-of-carry of futures or forward pricing mean? Explain how is it related to storage cost of gold.
Illustrate what problems would occur if the managers of each division were given incentives to maximize each division's profit separately.
The government budget is balanced, with government purchases and taxes both fixed at $1,000. Net exports are $100.
Does the lender gain or lose from this unexpectedly high inflation. Explain does borrower gain or lose.
If a hard freeze eliminates premium coffee crop, illustrate what will take place to the price of premium coffee.
Using your answers above, why does the growth rate of real GDP differ depending on the base year? Explain how the technique of Chain-Weighted Real GDP alleviates this problem.
Considers a consumer who suddenly changes her preferences with regard to air travel,
The town finds an investor who purchases the warehouse and promises to renovate the old building and build condominiums. Is this economic growth?
Determine the cost to the government of buying firms unsold units
Suppose firm sets an entry fee plus per-unit price for each consume. It can tailor entry fee and per-unit price to individual consumer. Illustrate what are best (profit-maximizing) entry fees and per-unit prices for it to set. Illustrate what is t..
Find out the total revenue and marginal revenue functions for men and women.
How much interest is in the sixty-fourth payment? How much principal? D. How much interest is in the sixty-eighth payment? How much principal?
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