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The determinants of demand and the demand for paperback books
For each of the following, state the determinant of demand that is changed, and explain how the determinant affects the demand for books.
a. The opening of a huge new library in town
b. A news story that the price of paperbacks is about to increase due to worldwide paper shortages
c. The opening of a new luxury resort in town, which brings in many guests
d. A large increase in income from the increased tourism in town
e. A news story that reports book readers are more likely to develop hemorrhoids
Manages regularly face the choice of increasing advertising expense or reducing price to increase sales in the Oligopoly market structure. The finance department predicts dropping the price by $2.00 will increase sales by 3,000 to 33,000 units next y..
What single sum of money at the end of the third year is equivalent to a payment series of $10,000 the first year, $9,000 the second year... down to 6,000 the 5th year? Assume the money has a time value of 10%/year compounded annually.
Economists frequently point out that factor movements between two countries can be a substitute for goods movements between the countries in terms of the impact on relative factor prices in the countries. Explain why the two types of movements can be..
Compute the current yield, the coupon rate, and the yield to maturity if the bond is puchased for $940.
Regional economic integration and multinational agreements in place help companies in pursuing and developing a transnational strategy. Do you agree with this statement? Why? Why not?
Why does Vellus export through local distributors rather than set up its own sales force in country? What are the risks associated with using local distributors? How can these risks be reduced? What lessons about successful exporting can be derived f..
Assume that starting salary for an SDSM&T Industrial Engineering graduate is $56000/year, and that the engineer will work for 30 years before retiring. At 4% inflation (treat as interest), would it be better to negotiate a $5600 per year raise, or a ..
Calculate the official unemployment rate (called “U-3”). Calculate the unemployment rate by including discouraged workers as unemployed and in the labor force (this is called “U-6”). Which unemployment rate is larger?
Which of the following is NOT a component of GDP?
When a recession generates unemployment, it is considered: At the national economy level, technological development can generate:
Clarify what action monetary policymakers must take for the actions of fiscal policymakers to have no effect on real income.
Eastern Airlines offers coach seats on its flight from Milwaukee to New York for $250. Sales have averaged 700 per day during the last year. Eastern’s primary competitor (Continental Airlines) cut their prices from $220 to $200. The quality of travel..
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