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a book store opens across the street from university book store (USB). The new store carries the same textbooks but offers them 20% lower than USB. if the cross-elasticity is estimated to be 1.5, and USB does not respond to it's competition, how much of it's sales will they lose?
Overheard at water cooler: My regression model of demand is better than one that the consultant prepared for us because it has a higher R2.
anderson county has 35 older-model school buses that will be salvaged for $5,000 each. these buses cost $144,000 per year for fuel and maintenance. now the county will purchase 35 new school buses for $ 40,000 each.
Joe sells vacuums. Given the demand for vacuums at P= 15 - .001Q. Joe faces constant cost of $3 per vacuum and $5,000 fixed cost. What is the dead weight loss given profit maximized out put is 6,000 units and rpice 9$
Suppose that the demand curve for accountants isED=20-W. The supply curve isES=2+2W. a. Graph the demand and supply curves. What is the equilibrium wage and number of accountants hired b. Suppose California taxes accountants $2.
Find E(Z) (1 dp) 2. Assuming that X and Y are statistically independent find var(Z) (1 dp) 3. Assuming that cov(X,Y) = 2 find var(Z) (1dp)
a selfless person approaches Jones and Smith with a $100 bill and offers to sell it to the highest bidder, but both the winning and the losing bidders must pay her their bids. so if jones bids $2 and smith bids $1 they pay a total of $3, but jones..
Rewrite the model to show that this is in fact a two-variable model rather than a three-variable model. Define the parameters
Alvin's utility function is U(W) = W. Barry's utility function is U(W) = W^2. Carl's utility function is U (W )= sqrt(W) . Each has wealth of only $100. An investment of that $100 has a 10% chance of netting $1,000 and a 90% chance of netting a lo..
Suppose Springfield's economy moves into a recession and Y falls to $9 and rising unemployment allows widget makers to reduce wages to $18 per hour. What happens to the supply and demand curves.
A government agency has 6000 employees. As an alternative to the traditional five-day work week, employees were asked whether they preferred a four-day work week (10 hours per day) or flexible hours. The table below shows the results by age catego..
An asset has an initial cost of $200,000, a salvage value of $25,000, and a recovery period of seven years. a. Find its book value after six years using the MACRS method. b. Find its book value after six years using the double declining balance metho..
You decide to open an individual retirement account (IRA) at your local bank that pays 8 percent/year compounded annually. At the end of each of the next 40 years, you will deposit $4,000 into the account. Three years after your last deposit.
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