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Q1. A television station is considering the sale of promotional DVDs. It can have the DVDs produced by one of two suppliers. Supplier A will charge the station a set-up fee of $1200 plus $2 for each DVD; supplier B has no set-up fee and will charge $4 per DVD. The station estimates its demand for the DVDs to be given by Q = 1,600 - 200P, where P is the price in dollars and Q is the number of DVDs. The price equation is P = 8 -Q/200.
Q2. If at an interest rate of 7 percent, planned investment is $2 trillion, government spending is $3 trillion, net taxes are $2.8 trillion, and household saving is $2.2 trillion, what is the quantity of funds demanded at an interest rate of 7 percent?
The marginal utility of a pizza is 20 utils, and its price is $2. If you buy one unit of each good, will you achieve consumer equilibrium? If not, how can greater total utility be obtained?
The U.S. faces the world price, and domestic suppliers sell as many. Discuss the effect of the tariff on the number of imports.
These three empirical observations are explained by ‘Preferred Habitat theory'. First, completely explain Preferred Habitat theory. Next, explain how this theory explains all three empirical observations.
Suppose there is an early freeze in California that reduces the size of the lemon crop. Elucidate what happens to consumer surplus in the market for lemons.
Some of the largest import tariffs tax on imported goods is on shoes. Strangely, the cheaper the shoes, the higher the tariff.
How does this variation affect people and corporations? Use the graph functions of Word or Excel to assist you-You will need two graphs.
Apply the coefficient-of-variation decision criterion to these alternatives to find out which is preferred by the angel investor, assuming that he/she is risk-averse.
Calculate the present value (PV) of profits for Abe's business at each of the following discount rates: 8%, 9%, 10%, and 12%.
Calculate market demand and market supply. How this affects golden rule of capital per worker and golden rule of savings rate in so low model and explain your results.
Doe the company rely primarily on a customer intimacy, operational excellence, or product leadership customer value proposition. Illustrate what evidence supports your conclusion.
What would happen to autonomous consumption if household debt fell and the interest rate rose over the same time period?
Explain how the Fed's use of its three tools of monetary policy affect supply and demand in the market for reserves and the equilibrium federal funds interest rate.
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