The quantity demanded of a certain electronic device is 1000 units when the price is $665. At a unit price of $640, demand increases to 1200 units. The manufacturer will not market any of the device at a price of $90 or less. However for each $50 increase in price above $100, the manufacturer will market an additional 1000 units. Assume that both the supply equation and the demand equation are linear.

(a) Find the supply equation.

(b) Find the demand equation

(c) Find the equilibrium price.

(d) Find the equilibrium quantity

you have chosen a binomal tree to model the price dynamic of a stock. the probability of an up move is 0.60. if the stock mives up, it earns a 5% return. if the stock moves down, it loses a 5% return. The current stock price is $100.

A.) compute the possible stock prices after two periods (based on the binomial tree for the stock price dynamic change).

B.) compute the corresponding probabilities for each possible price.

C.) compute the expected value of the stock price at the end of two periods.

creating a master budget

purchase prices are forecast for direct materials:

Summary data used in developing budgets for 2017 are as follows:
Sales:
a. Tea, 1080 lots at $9,000 selling price per lot.
b. lemonade, 540 lots at $8,500 selling price per lot.

Opening stock of direct materials:

a. Syrup for tea, 80 lots at $1,100 purchase price per lot.
b. Syrup for lemonade, 70 lots at $1,000 purchase price per lot.
c. Containers, 200 lots at $950 purchase price per lot.
d. Packaging, 400 lots at $900 purchase price per lot.
Opening (1 January 2017) stock of finished goods:
a. Tea, 100 lots at $5,300 per lot.
b. lemonade, 50 lots at $5,200 per lot.
Target closing (31 December 2017) stock of direct materials:
a. Syrup for tea, 30 lots.
b. Syrup for lemonade, 20 lots.
c. Containers, 100 lots.
d. Packaging, 200 lots.
Target closing (31 December 2017) stock of finished goods:
a. tea, 20 lots.
b. lemonade, 10 lots.
Each lot requires 20 direct manufacturing labor hours at the 2017 budgeted rate of $25
per hour. Indirect manufacturing labor costs are included in the manufacturing
overhead forecast.
Variable manufacturing overhead is forecast to be $600 per hour of bottling time;
bottling time is the time the filling equipment is in operation. It takes 2 hours to bottle
one lot of tea and 2 hours to bottle one lot of lemonade. Fixed
manufacturing overhead is forecast to be $1,200,000 for 2017.
Hours of budgeted bottling time is the sole allocation base for all fixed manufacturing
overhead.
Administration costs are forecast to be 10% of the cost of goods manufactured for 2017.
Marketing costs are forecast to be 12% of sales for 2017. Distribution costs are forecast
to be 8% of sales for 2017.
Required:
Using the first-in, first-out (FIFO) method for costing all stock. Prepare the following budgets for 2017:
1. Revenue Budget (in $)
2. Production Budget (in units)
3. Direct materials usage budget (in units and $)
4. Direct materials purchases budget (in units and $)
5. Direct manufacturing labor budget
6. Manufacturing overhead costs budget
7. Closing finished goods stock budget
8. Cost of goods sold budget
9. Marketing costs budget
10. Distribution costs budget
11. Administration costs budget
12. Budgeted Profit and loss account (Income
Statement)

4. Suppose that the aggregate market demand for good 1 is D(p) = 100 − 1 /4 p and the market supply is S(p) = p − 100. Buyers are taxed at $8 per unit.

What is the price paid by sellers after the tax is in place?

How much of the tax is borne by sellers?

Find the deadweight loss

Write a program in C++ that generates a random number between 1 and 10 and asks the user to guess it. Your program should continue until the user guesses the correct number. With each guess the user makes the program tells the user if the guess is too high or too low.

To generate a random number between 1 and 10 you need the following code:

  /* initialize random seed: */
  srand (time(NULL));
  /* generate secret number between 1 and 10: */
  secretnumber = rand() % 10 + 1;

You also need to add these lines to the top of your program with the other <include> statements so you can use the time() function:

#include <time.h>
#include <stdlib.h>
#include <stdio.h> 

1. There was a recession and the construction industry has been badly affected. As a result, Henry lost his job as a construction worker. He will be considered as part of:
   1. structural unemployment
   2. cyclical unemployment
   3. seasonal unemployment
   4. frictional unemployment
      
2. When the economy is at full employment, it means:
   1. no one is unemployed.
   2. there is no cyclical unemployment.
   3. there is cyclical or frictional unemployment.
   4. there is no structural or frictional unemployment.

3. When more labor is unemployed than the amount at the natural unemployment rate, then real GDP ________ potential GDP.
   1. is equal to
   2. is less than
   3. is greater than
   4. cannot be compared to
      
4. Which of the following describe the consumer price index (CPI)? It:

1. compares the cost of the typical basket of goods consumed in period 1 to the cost of a basket of goods typically consumed in period 2.
2. compares the cost in the current period to the cost in a reference base period of a basket of goods typically consumed in the base period.
3. measures the increase in the prices of the goods included in GDP.
4. is the ratio of the average price of a typical basket of goods to the cost of producing those goods.

Table 15.0

5. Refer to Table 10. Assume the market basket for the consumer price index has two products — bread and milk — with the following values in 2006 and 2013 for price and quantity: The Consumer Price Index for 2013 equals:
   1. 118.
   2. 116.
   3. 86.
   4. 85.

6. Suppose the CPI last year is 121 and the CPI this year is 137. The CORRECT method to calculate the inflation rate is:
   1. (137 - 121)/100 = 0.16.
   2. 137 × 121 = 258.
   3. [(137 - 121)/121] × 100 = 13.2.
   4. (137/121) × 100 = 113.2.
      
7. Which of the following describe the substitution bias that exists in the calculation of CPI? It:
   1. takes into account the substitution of goods by consumers when relative prices change.
   2. takes no account of the substitution of goods by consumers when relative prices change.
   3. substitutes quality changes whenever they occur without taking account of the cost of the quality changes.
   4. substitutes relative prices for absolute prices of goods.

Business 101 (Textbook: Exploring Business, v. 2.1)

WHAT'S GOING ON HERE?

Marcia Howard is a clerk at a local dress shop and her husband is a delivery man for a major courier service. Their combined income is not extraordinary, but with a little economizing here and there, they do fine. One area in which Marcia takes particular pride is the attention she pays to prices at the supermarket. By knowing the prices at different stores -- and taking advantage of specials -- Marcia saves a decent amount of money on the Howards' food bill.

In recent weeks, Marcia has noticed that the prices of bakery goods have risen significantly. A loaf of bread that cost 87 cents two weeks ago, now sells for 99 cents. Similar increases were apparent for cakes, cookies and other baked goods.

At her last visit to Safeway, Marcia asked the manager why prices on these items had risen so much. Having been bombarded with such complaints for most of the day, he replied briskly, "It isn't us, it's the producer. They raised their prices to us, so we have to pass the increase on to our customers."

Marcia wondered about this all through dinner that evening. Coincidentally, the news was on while she and her husband were eating. Two features caught Marcia's attention. First was a piece on the cost of living, which the newscaster reported to be up. He then went on to say that a good part of the increase was due to last summer's drought in the Midwest which reduced wheat production.

The second feature was part of a week long series on the former Soviet Union. In this segment, the reporter visited a Soviet food store and interviewed several customers and employees. They offered some contrasting opinions on developments since the decline of communism. Some spoke favorably on the availability of products in the market place. "Before, you could only buy what the government produced. Often, there were limits on how much you could buy, and, almost always, you were forced to wait in long lines to buy what little was in the store," one employee remarked. A customer took exception. "Yes, but prices were low then. I remember when bread was 39 cents a loaf. And, it stayed at that price for years. Today's high prices make it very hard for a fixed income citizen like me." Prices had indeed reached levels for some products that were higher than in the United States. Marcia thought there was probably some truth in both opinions - she would love to have low prices, but not so eager to spend hours trying to buy a limited selection of products.

Marcia relates all this to you when you have coffee after aerobics class, and asks you what's going on. Please explain to Marcia why you think prices are rising here in the U. S. and how things have changed in the former Soviet Union.

Using the package “wooldridge’, and the data ‘hprice1’ (in R-Software) to estimate the model price = β0 + β1sqrft + β2bdrms + u , where is the house price measured in thousands of dollars.

1. Write out the results in equation form.

2.  What is the estimated increase in price for a house with one more bedroom, holding square footage constant?

3. What is the estimated increase in price for a house with an additional bedroom that is 140 square feet in size? Compare this to your answer in part 2

4. What percentage of the variation in price is explained by square footage and number of bedrooms?

5. The first house in the sample has sqrt = 4238 and bdrms = 7. Find the predicted selling price for this house from the OLS regression line.

6. The actual selling price of the first house in the sample was $400,000 (price = 400,000 ). Find the residual for this house. Does it suggest that the buyer underpaid or overpaid for the house?

You are given the sample mean and the population standard deviation. Use this information to construct the​ 90% and​ 95% confidence intervals for the population mean. Interpret the results and compare the widths of the confidence intervals. If​ convenient, use technology to construct the confidence intervals. A random sample of 40 home theater systems has a mean price of ​$129.00. Assume the population standard deviation is ​$16.60.

Interpret the results. Choose the correct answer below.

A. With​ 90% confidence, it can be said that the population mean price lies in the first interval. With​ 95% confidence, it can be said that the population mean price lies in the second interval. The​ 95% confidence interval is narrower than the​ 90%.

B. With​ 90% confidence, it can be said that the sample mean price lies in the first interval. With​ 95% confidence, it can be said that the sample mean price lies in the second interval. The​ 95% confidence interval is wider than the​ 90%.

C. With​ 90% confidence, it can be said that the population mean price lies in the first interval. With​ 95% confidence, it can be said that the population mean price lies in the second interval. The​ 95% confidence interval is wider than the​ 90%.