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Gas prices fluctuate often and in both directions. In your initial post, respond to the following: How responsive do you think consumers will be to the price change when these fluctuations occur due to changes in supply? Why? Use the various determinants of elasticity to explain your answer. How does the price elasticity of demand for gasoline impact the effectiveness of taxes on gasoline aimed at correcting a negative externality? Consider incorporating the supply-and-demand model to demonstrate the elasticity of demand for gas and to show the effects of tax on the market for gas.
Illustrate what is the difference among the multiplier in a closed private economy also the multiplier in a mixed open economy.
q.suppose the cfo of an american corporation with surplus cash flow has 90 million to invest and the corporation does
A project has an initial cost of $160,000 and an estimated salvage value after 14 years of $100,000. Estimated average annual revenues are $28,000. Estimated average annual costs are $16,000. Assuming that annual revenues and costs will be uniform, c..
Neither firm can choose which cell of the payoff matrix to obtain; the payoff for every firm depends upon the pricing strategies of both firms.
Risk premium is
Consider a series of end-of-period CFs spanning 2043-2050, which increase by a fixed amount each period. The amount of the first CF in the series is $90 and the increment is $77. The nominal interest rate is 1.8%; compounding occurs 9 times per year...
Shen and Valerie are building their portfolios. Shen purchases shares in a mutual fund and pays fees to a manager who actively manages the mutual fund's portfolio. He does so because he believes that the manager can identify inexpensive stocks that w..
As the price level rises
Contrast the difference between temporary and permanent damages on the incentives of people to build new houses near the cement factory
A financial instrument backed by a collection of mortgages is called a(n):
Suppose as a manager of a profitable department store you are confronted with a pricing problem. You have two types of customers: a high-end type that are willing to pay a price of $25 for a pair of Levis Jeans, and a low-end type customer that are w..
A small consulting company is planning to make deposits such that each one is 3% larger than the preceding one. What is the annual equivalent of this cash flow if the company makes 12 deposits and the interest rate is 8%? The first deposit is $7,000 ..
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