The accompanying table lists the cross-price elasticities of demand for several goods, where the ­percent quantity change is measured for the first good of the pair, and the percent price change is measured for the second good.

Good                                                                                        Cross-price elasticities of demand

Apple and orange                                                                                +0.95

Shirt and trousers                                                                                -2.55

Explain the sign of each of the cross-price elasticities. What does it imply about the relationship between the two goods in question?

b.

Which of the following goods are likely to have elastic demand, and which are likely to have inelastic demand? Justify you answers.

Egg

Restaurant meal

Your business is offered a contract that pays $386,427 every quarter for three years. What is the contract worth to you today if the discount rate is 7.03% per quarter.

Microsoft and Apple around the 2012 launch announcements of the Surface Tablet and the iPad 2. At the end of the financial quarter prior the announcements of the tablet computers,
the Price-to-Earnings (PE) ratio of Apple was 38 and the PE ratio of Microsoft was 53. At the end of the quarter after the product announcement the PE ratio of Apple was 61 and the PE ratio of Microsoft was 56.

Describe the change in PE ratios between the quarter prior and the quarter after the announcement. What does the movement in PE ratios suggests for each
company? Also, explain what drives the PE differentials between Microsoft and Apple – why are they so different between the two companies?

The Jarrad Corporation's management team is getting ready to prepare its master budget for one it...

The Jarrad Corporation's management team is getting ready to prepare its master budget for one its product lines for the year 2019. The company produces caramel lollipops which are basically cooked down sugar on a stick, a diabetics nightmare along with many other sweet treats.

Budgeted sales of the lollipops for each quarter of 2019 are as follows:

1st Quarter-12,500 cases

2nd Quarter-14,000 cases

3rd Quarter-25,500 cases

4th Quarter-34,900 cases

There are 100 lollipops in a case and each sells for $200. Jarrad is budgeting a 5% sales price increase effective July 1,2019

The 4th Quarter 2018 sales have been budgeted at 32,000 cases and Jarrad wants to have an ending inventory carried over into 2019 of 2,000 cases.

At the end of 2019 they desire an ending inventory of 2,250 cases. Each quarter an additional 10% of that quarter's sales is to be produced as an ending inventoy to be carried over into the following quarter.

Materials:

Sugar costs the company $3.20 per lb. (16 ounces) Each lolllipop is 2 ounces of sugar which is melted down into caramel. The caramel is coated in 2 ounces of Belgian chocolate which costs the company $.28 per ounce. Each lollipop stick costs $.03

Direct Labor and Machine Hours:

The production of these lollipops is a highly automated one requring only 45 minutes to produce one case of lollipops. Of this 45 minutes, 30 minutes are automated and 15 minutes requires human interaction. The cost of running the machines during the year based on 4,500 hours is $8.75 per hour. Budget these hours evenly over the four quarters of 2019. The direct labor rate per hour is $11. The budgeted cost of operating the machinery is included in the manufacturing overhead budget for the year.

Cases of lollipops produced in 2019:

1st Quarter $1,175,000 ,  2nd Quarter $1,415,000 , 3rd Quarter $2,665,000 , 4th Quarter $3,460,000

Total production of lollipops in 2019 : $ 8,715,000

Budget cost of the sugar which is required to produce the total number of lollipop to be produced in 2019: $3,486,000.

Budget cost of the chocolate which is required to produce the total number of lollipop in 2019: $305,025

Budget cost of the lollipop sticks which are required to produce the lollipops in 2019: $261,450

-How many budgeted direct labor hous will be required to produce the total number of cases of lollipops for 2019? ................................. hours

-What is the budgeted direct labor cost for 2019? $..................................

B. Discuss, “in details,” the social, political and/economic reasons why, in the twenty first century, parasitic infections continue to be major burden to most of the world’s population.

"Medicare increased payments to providers and still managed to keep

overall spending to 7.8 percent in 2001,” said Representative Pete Stark, Democrat of

California. “Meanwhile, private insurance premiums went up 10.5 percent. Given

these results, I cannot understand why Republicans continue to devise plans for

turning Medicare over to private health insurers.”

Can it be possible for total spending by private insurance to go up faster than

spending on public insurance and yet have the private

insurance plan be better?

Explain.

part 1a. Which of the following events will lead to an increase in aggregate demand?

1b:

1. In the fixed-price Keynesian model, which of the following will lead to the largest increase in real GDP?

   	a.	a balanced budget change of $500.
   	b.	an increase in government spending of $500.
   	c.	a decrease in government spending of $500.
   	d.	a decrease in taxes of $500
   	e.	an increase in taxes of $500.