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Q1. Most restaurant customers tip according to a percentage rule between 15 and 25 percent of the bill. Diners who have dinner and a $20 bottle of wine usually pay the same percentage of the bottle price as diners who order a $100 bottle. Why, when the same efforts must be made to uncork and pour both bottles?
Q2. Starting with the estimated demand function for Chevrolets given in problem suppose the average value of the independent variables changes to N=225 million, I= 12,000, PF=10,000, Pg=100 cents, A=250,000, and p1=0(ie. The incentives are phased out)
(a) Find the equation of the new demand curve for Chevrolets.
(b) if Pc is 10,000, find the value of Qc?
Use supply and demand model to explain the dramatic rise in the price of a college education.
All farmers in Trivialand are self - employed and sell all of their wares to Super Duper. Elucidate the costs incurred by all of Trivialand's busines.
Recent survey of high school students, it was found that the average amount of money spent on entertainment each week. Values are representative of all high school students.
Assessing the development of the discipline from today's perspective, how would Keynes's impact compare with that of your candidate.
Assume the current market price of candles is such that there is a surplus.
In a current newspaper article you also read that The Camera Shop has exhausted its undertaking capital and that no new investors
MMM expects to generate $60,000 in earnings that will be retained for reinvestment in the firm this year.
Impacts on currency markets and on economic conditions within the country and globally.
Explain how this new inflationary environment would affect the demand for money according to portfolio theories of money demand.
Suppose that the only input used in the generation of solar energy is sunlight
Between two production technologies firm can choose a new product line. If it installs expertise 1, it's annually costs.
Two firms are located on the line and sell identical products. Consumers obtain K utility from consuming a product; assume that K is large enough that all consumers purchase from at least one of the firms despite the costs of transportation.
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