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1. Search YouTube for the video titled Black Friday 2006-Best Buy Line. Do the early shoppers appear to have elastic or inelastic demand on Black Friday? Explain your response.
2. College logo T-shirts priced at $15 sell at a rate of 25 per week, but when the bookstore marks them down by 33%, it finds that it can sell twice as many T-shirts per week. What is the price elasticity of demand for the logo T-shirts?
Suppose the bank in the table below has only reserves and loans on the asset side of its balance sheet, and demand deposits on the liabilities side of its balance sheet. Assets Liabilities Reserves $36,000 Demand Deposits $300,000 Loans.
What is the substitution effect? Why do the substitution and income effects normally reinforce each other? Is this true for an inferior good?
An $8,000 car loan is paid off with $250 monthly payments over three years, what monthly interest rate r is the bank charging? It can be shown that this problem translates into the equation
An article in the Wall Street Journal discussed the market for gasoline in the United States during the summer of 2013. Compared with the previous summer, the article stated that there will be "lower demand, as cars become more efficient" and "gro..
A university spent $1.8 million to install solar panels atop a parking garage. These panels will have a capacity of 500 kw, have a life expectancy of 20 years and suppose the discount rate is 10%.How big of a grant would make this project worthwhile.
According to the News on page 677, what percentage of retail jobs would be lost if the minimum wage were increased to $9.50. Obama Wants $9.50 Minimum Wage (Crains)- When Barack Obama and his fellow Democrats take power in Washington.
Matt is a 25 year old engineer, and his salary next year will be $60,000. Matt expects that his salary will increase at a steady rate of 5% per year until his retirement at age 65. If he saves 10% of his salary each year and invest these savings
Joe the Plumber runs a competitive firm. He does 20 works per week, and charges $50 per week. His total cost each week is $1200, of which $300 is Fixed cost. Draw a diagram about his short and long run decision.
Jane has decided to buy the mini-bus and set up a commuter service between Lincoln and Omaha. There are 1000 people who will pay $400 a year each for the commuter service; $280 from each person goes for gas, maintenance, insurance, depreciation, e..
By the numbers . Using the U.S. Bureau of the Census data on state and local governments, find the amount of state aid to local governments from 1997 to the most recent available year and calculate the amount of aid as a percentage of general reve..
"As more people buy fuel-efficient hybrid cars, the demand for gasoline will decrease and the price of gasoline will fall. The fall in the price of gasoline will decrease the supply of gasoline." Is this statement true? Explain.
You need to hire some new employees to staff your start-up venture. You know that potential employees are distributed throughout the population as follows, but you can't distinguish among them: Employee Value Probability
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