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Taxicab fares in most cities are regulated. Several years ago taxicab drivers in Boston obtained permission to raise their feres 10 percent, and they anticipated that revenues would increase by about 10 percent as a result. They were disappointed, however.When the commissioner granted the 10 percent increase, revenues increased by only about 5 percent. What can you infer about the elasticity of demand for taxicab rides? What were taxicab drivers assuming about the elasticity of demand?
find out where he stands in both exams. Show your work. Ross scored 80 on a statistics exam whose mean was 70 with standard deviation 5. He scored 85 on an accounting exam whose mean was 80 with standard deviation 8.
Suppose the consumption function is C = $400 billion + 0.8Y and the government wants to stimulate the economy. By how much will aggregate demand at current prices shift initially (before multiplier effects) with: ( a ) A $50 billion increase in go..
Cinema Theater has estimated the following demand functions for its movies: Daytime demand, QD = 400 - 50 PD Nighttime demand, QN = 200 - 20 PN The marginal cost of serving another customer is $5 and its fixed costs are $100.
A sum of $25,000 is deposited into a savings account that pays 8% interest compounded semiannually. Equal annual withdrawals are to be made from the account, beginning 1 year from now and continuing forever.
A construction firm needs a new small loader. It can be leased from the dealer for 3 years for $5500 per year including all maintenance, OR it can be purchased for $20,000. The firm expects the loader to have a salvage value of $7,000 after 7 year..
Given an expected real interest rate of 2 percent. For each of the expected inflation rates of 0, 2, 4, 6, and 8 percent. How do I calculate the nominal interest rate and the after-tax expected real interest rate if the tax rate is 30 percent
The inverse market demand in a homogeneous product cournot duopoly is P=280-2Q=280-2(q1+q2) and costs are C1(q1) = 20q1 and C2(q2) = 30q2. a. How much output will each firm produce in equilibrium b. What are the equilibrium market shares for these t..
If Boeing's dollar aircraft prices increase 20% and the yen /dollar exchange rate decline 15% , what effective price increase is facing Japan air Lines for the purchase of a Boeing 747 Would Boeing's margin likely rise or fall
A sample of 48 warehouses that are for sale across the U.S. is taken, and the mean price per square foot is $31.67, with a sample standard deviation of $1.29. Test the investor's concern at a 5% level of significance.
Urea is used as a fertilizer in cultivation of agricultural products. In Pakistan there are very few industrial plants for the production of urea. Energy shortage has badly affected the production of these industrial plants. This situation has inc..
Suppose that the one year U.S. interest rate is 5%. If the one year forward rate against the pound is $1.75 per pound and the spot exchange rate is $1.78 per pound, what must the equivalent British interest rate be if covered interest parity holds
Determine algebraically the profit-maximizing outputs for the production and marketing divisions of the firm and the optimal transfer price for the intermediate product and the price of the final product.
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