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The price of a plane ride rises by 10 percent. The price elasticity of demand for plane rides is 0.5 and the price elasticity of demand for train rides is 0.2. The cross elasticity of demand for train rides with respect to the price of a plane ride is 0.4.
Calculate the percentage changes in the quantity demanded of plane rides and train rides.
Calculate the equilibrium level of output when i=8% (let i=8). Where is this point on your graph Assume that i continues to be 8%. Calculate the equilibrium level of output when G increases by 100 (to 500). What is the size of the money multiplier
In May 2012, the yields to maturity in the table below were recorded on Treasury discount bonds. If the expectations theory of the term structure holds, what do bond traders expect the interest rate on five-year discount bonds to be in May 2017, M..
What is the United States' best strategy? What is Canada's best strategy? What is the outcome of this game? Explain.
The built-up timber beam is subjected to a 1500-lb vertical shear. Knowing that the longitudinal spacing of the nails is s = 2.5 in. and that each nail is 3.5 in. long, determine the shearing force in each nail
Your father is 50 years old and will retire in 10 years. He expects to live for 25 years after he retires, until he is 85. He wants a fixed retirement income that has the same purchasing power at the time he retires as $55,000 has today.
If the firm only needs the machine for 5 years. Assuming a salvage value will be $8,000 for Machine A, $15,000 for Machine B at the end of 5th year, which alternative should be selected when using present equivalent cost comparison
The 1-year interest rate in the U.S. is 10%; in Switzerland it is 12%. The current spot rate (dollars per franc) is $0.40. a. What do you expect the 1-year forward rate to be b. Is the franc selling at a premium or discount
If there are 1,000 people in each of the three travel-cost categories $0, $20, and $39, what is the approximate total consumer surplus arising from day trips to this beach?
Suppose that the home currency start to appreciate against other currencies, this should the current account balance, other things equal
Determine the smallest safe diameter of the shaft if the allowable shear stress is 15 ksi.
Advertisers are willing to pay $10 to advertise in one newspaper but only $19 to advertise in both, because they're willling to pay twice to reach the same subscriber. what's the likely bargaining negotiation outcome
State the slope of the line of best fit. Carefully interpret the meaning of the slope in a sentence or two. Find and state the value of r2, the coefficient of determination, and r, the correlation coefficient.
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