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Question: Imagine yourself in the following two situations:
a. You are about to go shopping to purchase a stereo system at a local store. Upon reading the newspaper, you find that another stereo store across town has the system you are interested in for $1,089.99. You had been planning to spend $1,099.95, the best price you had found after considerable shopping. Would you drive across town to purchase the stereo system at the other store?
b. You are about to go shopping to purchase a popcorn popper at a local hardware store for $19.95, the best price you have seen yet. Upon reading the paper, you discover that a department store across town has the same popper for $9.99. Would you drive across town to purchase the popper at the department store?
Many people would drive across town to save money on the popcorn popper, but not on the stereo system. Why is this inconsistent with expected utility? What explanation can you give for this behavior?
Examine whether the introduction of the London Living Wage (LLW) has been good for London and for Londoners. Illustrate your answer using a case study focusing on one particular sector or industry.
1 discuss the process of money creation by the commercial banks2 suppose the central bank sells 5 billion worth of
Calculate the amount the hospital would report as net patient service revenue in its statement of operations for the fiscal year ending Sept. 30, 2011.
Soma cable has a educational channel and a music video channel. The viewing audience consists of two segments (A and B). Below shows the segment sizes, their RP's for each channel:
Explain the concepts of consumer surplus and producer surplus, and then use these to demonstrate that a price ceiling is less efficient than equilibrium in a supply and demand analysis. Articulate why the price ceiling results in either a shortage..
Expendable supplies (gases, chemicals, glassware, etc.) will cost $19,000 per year. The utility anticipates 140 samples per year. If the analyses are sent to an out- side lab, the cost per sample will average $1250. If the utility uses an interest..
a fundamental assumption for economic analysis is that economic agents be it an individual a household or a
Calculate the price elasticity of demand for the following demand function
Cultural determinants about this country would be most important to you as you reach a decision about whether or not to do business in this country.
John Taylor of Stanford University proposed the following monetary policy rule: R_t-r ¯=m ¯(π_t-π ¯ )+n ¯Y ~_t. That is, Taylor suggests that monetary policy should increase the real interest rate whenever output exceeds potential.
You are pension fund manager with a problem. You are constrained by regulation to hold 50% of your pension portfolio in shares, but you are very worried about a stock market crash and would like to hold only riskless bonds. You are not constrained..
The monthly rental rate for a satellite dish antenna is $200. There are 100 residents in the condominium community. The maximum marginal benefit any resident will obtain from the antenna is $50 per month.
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