Economics Answers

A book store opens across the street from the University Book Store (UBS). The new store
carries the same textbooks but offers a price 20 percent lower than UBS. If the cross-price
elasticity is estimated to be 1.5, and UBS does not respond to its competition, how much of
its sales is it going to lose?

In a typical daily income-leisure choice model, wage rate is increased from $4 per hour to $8 per hour. Assume leisure is a normal good. a. With a conventional indifference curve, analyze the substitution and income effects. b. If income and leisure are perfect 6-for-1 complements, analyze the substitution and income effects. c. If income and leisure are perfect 6-for-1 substitutions, analyze the substitution and income effects.

in two sentence, state the ways in which capital expenditures are treated in accounts and why

By the use of the concept of consumer surplus and marginal utility, explain how you will solve the water problem in your community if water is not metered.

The equation for a demand curve has been estimated to be Q = 100 - 10P + 0.5Y, where
Q is quantity, P is price, and Y is income. Assume P = 7 and Y = 50.
a. Interpret the equation.
b. At a price of 7, what is price elasticity?
c. At an income level of 50, what is income elasticity?
d. Now assume income is 70. What is the price elasticity at P = 8?.

5. Mr. Smith has the following demand equation for a certain product: Q = 30 - 2P.
a. At a price of $7, what is the point elasticity?
b. Between prices of $5 and $6, what is the arc elasticity?
c. If the market is made up of 100 individuals with demand curves identical to Mr. Smith’s,
what will be the point and arc elasticity for the conditions specified in parts a and b

Using appropriate examples, explain why the existence of negative externalities and public good causes market failure.

The teenager company makes and sales skate boards at an average price of $70 each.During the past year they sold 4000 of these skateboards. The company believes that the prices that the price elasticity for this product is about -2.5. If its price decrease to $ 63.what should be the quantity sold?will revenue Increase ?why?

discuss major barriers to both local and foreign direct investment in LDC's

Build the projected revenue budget for the six months ending in December.

Apollo cash receipts
1.5.20xx – 30.9.20xx
May June July Aug. Sept. Oct. Nov. Dec.
3,000 5,000 7,000 5,000 5,000 4,500 3,000 3,000

Note:
Cash receipts are shown. Credit revenues are twice that of cash each month. Credits sales were $3,000 in March and $5,000 in April. Credit terms are 50% by end of the month; 35% by end of the next month balance by end of third month.
May June July Aug Sept Oct Nov Dec
Cash 3,000 5,000 7,000 5,000 5,000 4,500 3,000 3,000
Total Credit 6,000 10,000 14,000 10,000 10,000 9,000 6,000 6,000
Cr rcvd. 90 days
Cr rcvd. 60 days
Cr rcvd. 30 days
Total $

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The growth rate in the fourth quarter of 2010 was 3.1%. What was the growth rate in the first quarter of 2011?


a) -3%


b) 1.2%


c) 1.9%


d) 5%