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Assume the demand function for basketballs is given by QD = 150 - 3P + 0.1I, where P = price of a basketball and I = average income of consumers. Also, assume the supply of basketballs is given by QS =2P. If the market for basketballs is perfectly competitive and the average income is equal to $1,500, what are the equilibrium price and quantity? What if a 20% income tax is introduced?
A machine has an initial cost of $500,000, and was estimated to have a salvage value of $30,000 at the end of its 7 years useful life. The machine is expected to generate annual net savings of $125,000. A loan of $200,000 at 7% interest will help ..
Given an economy that is described by the following equations: C=2,000+0.8(1-t)Y t=0.25 I=800-200i G=1200 L=0.2Y-100i M=45,000 P=150 What equation describes the goods market equilibrium
the formula for AFC, AVC, ATC, MC, TR, MR The market price faced by this firm is $6.00 per widget. a. Fill in the formula for AFC, AVC, ATC, MC, TR, MR, and Total Profit b. Fill in the missing values for TFC, TVC, AFC, AVC, ATC, MC, TR, MR,
Albert Einstein once noted that" compounding of interest is one of humanity's greatest inventions". to illustrate the mind-boggling effects of compounding suppose $100 is invested at the end of each year for 25 years at i=50% per year. In this cas..
A pint of British marmalade costs a United States customers $10. Assume that the dollar depreciates against the British Pound, the pint of British marmalade for the United States customer will cos
Manke a graph showing the relationship between two variables, X and Y . Determine whether the relationship is negative or positive
You estimate the operating expenses, including taxes, will be $45,000 for the first year and that they will increase by $3000 each year thereafter. You also estimate that razing the building and selling the lot on which stands will realize a net a..
Determine the economic advantages or disadvantages, for the United States speaker company Bose, to start a distribution center in the Czech Republic?
A company is considering purchasing a fleet of delivery vans which are available with either a diesel or gasoline fueled motor. The gasoline powered van has an initial price of $29,750, the diesel powered one costs $32,250. Both vehicles have a sa..
If your nominal income rose by 5.3 percent and the price level rose by 3.8 percent in some year, by what percentage would your real income (approximately) increase If your nominal income rose by 2.8 percent and your real income rose by 1.1 percent..
Suppose the market demand curve for a product is given by: Qd = 500 - 15P + 20I and the market supply schedule is: Qd = -25 + 10P + 10K. The initial values are I = 10, K = 5.what is the price elasticity of demand.
Mining is proposed for a wilderness area that provides two benefits: recreation (due to backpacking opportunities) and biodiversity (there are endangered wildlife and plants). The mining is expected to reduce backpacking visits from the current 10,..
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