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Q. Suppose you go to buy a GM car. The car is priced at $24,000. The salesperson offers you financing along free interest, for 3 years, with no money down. Otherwise she tells you that if you pay cash for the car, you get $3000 cash back. To make things simple assume this means you pay $8,000 at the end of the first year, $8,000 at the end of the second year, and $8,000 at the end of the third year after buying the car.
Suppose the market interest rate, for that you can have a loan or lend, is 5%. Elucidate what is the present discounted value of the cost of the car if you use GM's interest-free financing?
The national economy has been in a slump for several years, but recent signs of strength in much of the economy have led many forecasters to conclude that an expansion could finally be in the offing.
Consumers buy from the lowest price firm, and the highest price firm sells nothing. If the firms pick the same price, they split the market demand equally.
As control variables, Quinn's data also includes income the individual earned in the month the data was collected, and the amount that it rained in the month the data was collected.
Sharp rises in the cost of milk, grain, and fresh fruits and vegetables are hitting cafeterias across the country, forcing cash-strapped schools to raise prices or serve more economical dishes.
What is Wirelesses' producer surplus from sales for each low-demand as well as consumer.
Using a wholesale cost of $4 per case in each state, calculate the breakeven output quantities for each alternative.
Suppose that the US government determines that cigarette smoking creates social cost not reflected in the current market price an equilibrium quantity of cigarettes.
Assume no change in current productivity or current labor supply in either country. What is happening to financial flows.
Your paper should be written using a word-processing program, likely Microsoft Word otherwise a Word-compatible program.
Discover the payout ratio rounded to the nearest whole percent, and explicate what a payout ratio means.
Merit goods have received considerable attention. Can concerts and other publicly provided services be rationalized using these ideas.
Assuming that all buyers received the credit, estimate the own cost elasticity of demand as well as well as own cost elasticity of supply.
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