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Ted is renting a house, and it does not have a refrigerator. A refrigerator is worth $2.75 every day because Ted will eat out less. Ted has a discount rate of 17%. Refrigerators usually last 6 years.
A) How much is Ted willing to spend on a refrigerator?
B) Lowe’s is offering a financing deal with 15% down payment and 3 years of payments, such that every year of payments equals 30% of the purchase price. At these terms, how much is Ted willing to spend on the fridge.
C) Ted buys a $2500 refrigerator on the finance plan. The refrigerator has a 3 year warranty. Ted can buy a 4 year extension of the warranty (making it a 7 year warranty) for $1000. Assume the refrigerator will break when it is exactly six years old, and will not be repairable. The warranty will replace the broken refrigerator with a new unit. Should Ted buy the warranty? Assume the same Lowe’s financing deal will be available in 6 years, should Ted want to purchase a replacement refrigerator.
A precise definition of globalization is difficult, because globalization is a process which removes economic, social and cultural boundaries of nation states. Discuss this process. Do you think that globalization is a win-win situation for all count..
Assume a specific factors economy produces two goods, cloth and food, and that when representing the output of this economy graphically, cloth is on the x-axis and food is on the y-axis. Movement of labor from a Foreign country to the domestic (Home)..
q1. on one hand the wtos role in international trade is becoming more significant. on the other hand its verdict on the
Suppose you manage a convenience mart and are in charge of ordering products but do not set the price. The home office provides the prices. In your area, the income elasticity of demand for peanut butter is -.05. Due to local factory closings, you ex..
Calculate the cross-price elasticity of demand. Given the elasticity you calculated, did it make sense for supermarket to raise its price.
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A secondary reason for a government to impose a tariff is to:
Explain why a university degree can be treated as a form of capital. 'Most countries import substantial amounts of goods and services from other countries.’
The financial plan is:
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Suppose demand is still described by P=5.10-0.80Q and supply is described by P=1.90-0.20Q. If there is a price floor of 2.94, what would be the quantity traded?
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