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Q. Suppose you are the manager of a home-building company and the government is considering eliminating the deduct-ability of mortgage payments interest. As distinctive consumer's marginal tax rate is 25% and the elasticity of demand for new homes is -1.5. Your boss wants to know the impact of the proposed government policy on your business. What would you tell him? Suppose that marginal tax rates were reduced to 20% as part of the tax bill. How does this change your answer?
Is this projected outcome consistent with the law of demand? What is the price elasticity of demand associated with this pricing decision? Should you increase the price?
Suppose a foreign investor who holds tax-exempt Eurobonds paying 9% is considering investing in an equivalent-risk domestic bond in a country with a 28% withholding tax on interest paid to foreigners. If 9% after-tax is the investor's required return..
How much Wyandotte have to decrease the price of polyol to attain a 15% increase in the quantity sold.
The CPI for 2009 was 195 but i know that the imfataion rate couldn't habe been as high as95% in 2005". In your answer carefully explain what the value of CPI means.
21st century insurance offers mail-order auto mobile insurance to preferred risk drivers in the Los Angeles area.
The zinc also copper monopolists every set a price, believing that the other monopolist will not change its price. Conclude the equilibrium price of brass.
What is elasticity of demand for hamburgers at equilibrium. What are consumer surplus and producer surplus at equilibrium.
q1. prepare five-year revenue and return on sales objectives. justify your objectives. you should be able to derive an
What is the profit maximizing price? a) 810 b) 750
What will happen to the domestic trade balance following a devaluation of the domestic currency? Explain carefully the effects during the pass-through period, and be sure to explain why these effects occur.
Find the output you should produce in order to maximize your expected profits so that you can then determine your expected profits accurately.
do we have as consumers to the losers of globalization? Discuss and justify your postings and responses with other students in our course.
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