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Suppose that when the price of beef is $10/kg, the daily quanity of beef sold in Tesco, a British Grocery store, is 10,000 kg. Suppose further that if the price of beef rises to $12/ kg, the amount of beef falls to 8000 kg. Assuming that the demand curve in this market is linear, what is the equation of the demand curve faced by Tesco in this market if
Qd = C-(D)(Pd)
Qd = quantity demandedPd = Price DemandedC = horizontal interceptD = demand
Assume that before receiving the discount loan, FNB has no excess reserves. What is the maximum amount of this $10 million that FNB can lend out c. What is the maximum total increase in the money supply that can result from the Fed's discount loan
Bounds Inc. has determined through regression analysis that its sales (S) are a function of the amount ofadvertising in two different media.This is given by the following relationship (X=newspapers,Y=magazines): S(X,Y) = 200X + 100Y - 10X2 - 20Y2 ..
A city engineer knows that she will need 25 million in 3 years to replace toll booths on a toll road in the city. Traffic on the road is estimated to be 20 million vehicles per year. How much per vehicle should the toll be to cover the cost of the..
Suppose 1 year Treasury-bills were currently yielding 5.5%. Also suppose that a bank estimated that a particular loan applicant had a 30% chance of defaulting on a one year loan and that in the event of default the bank would recover only 25% of i..
A tax is placed on x so that x now costs Max $2 while his income and the price of y stay the same. How much of good x does he now demand? Would Max be as well off as he was before the tax if when the tax was imposed, his income rose by an amount eq..
Calculate the overall rate of interest the couple will pay using this arrangement. If you answer using a percent, please include a minimum of two significant digits in your answer. If you answer using a decimal, please include a minimum of four ..
Public sentiment now changes such that depositors cut their cash holding in half and deposit the other half in time deposit accounts. The reserve requirement on DDs remains 25%, on TDs it remains zero, “m” remains 0, and banks continue to hold no ex..
A new gear grinding machine for composite materials has a first cost of P=$100,000 and can be used for a maximum of 3 years. Its salvage value is estimated by the relation S=P(0.85)n, where n is the number of years after purchase. The operating cost ..
An electronic device is available that will reduce this year's labor cost by $10,000. The equipment is expected to last for 8 years. If labor costs increase at an average rate of 7% per year and the interest rate is 12% per year: a. What is the m..
A company has an annual requirement for 150,000 parts, which cost $125 each. The parts require processing having a $4,000 setup cost. Each part occupies 0.5 sqft of floor space in the factory. Floor space has a total cost of $12.50 per square foot..
Suppose Zia spends her time picking berries and apples. Her production set is described by the equation , where is the number of berries and y the number of apples.
If the current price of the product is $150, what is the quantity supplied and the quantity demanded How would you describe this situation and what would you expect to happen in this Market
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