Questions
An increase in price will result in no change in total revenue if: * A) the...


An increase in price will result in no change in total revenue if: *
A) the percentage change in price is large enough to cause quantity demanded to fall to zero.
B) the coefficient of elasticity is equal to zero.
C) the percentage change in quantity demanded is equal to the percentage change in price (in absolute values).
D) the demand function is perfectly elastic.
Assume the demand for a good is price inelastic, i.e., ed < 1 (in absolute value). This means that if price decreases by 50 percent, quantity demanded will: *
A) increase by more than 50 percent.
B) decrease by more than 50 percent.
C) increase by less than 50 percent.
D) decrease by less than 50 percent.
As the percentage of the consumer's income accounted for by a particular good decreases, demand for the good will: *
A) tend to become more price elastic.
B) tend to become more price inelastic.
C) tend to become closer to unit elastic.
D) tend toward being perfectly elastic.
For an inferior good, the income elasticity of demand is: *
A) positive or negative depending on the share of income accounted for by the good.
B) always negative
C) positive if income increases and negative when income declines.
D) always equal to 1.
"Supply" is best defined as the relationship between: *
A) the current price of a good and the quantity supplied at that price.
B) the price of a good or service and the quantity supplied by producers at each price during a period of time.
C) the cost of producing a good and the price consumers are willing to pay for it.
D) the quantity supplied and the price people are willing to pay for a good.
Which of the following would cause a change in supply, as opposed to a change in quantity supplied, in the market for purchasing new homes? *
A) A decrease in the price of rental housing.
B) A decrease in the price of new homes
C) An increase in the incomes of home buyers.
D) An increase in the number of buyers in the market for used homes.
Many people consider lentils to be an inferior good. For such people, all else held constant, an increase in income would cause their demand for lentils to: *
A) increase.
B) stay the same.
C) decrease.
D) cannot be determined with the information given.
Suppose the demand for good X is given by Q_x^d = 300 – 15Px + 20Py - 60I , where Px is the price of good X. Py is the price of some other good Y, and I is income. Assume that Px is currently $50, Py is currently $100, and I is currently $1200 *
A) Goods X and Y are complement goods
B) The supply is elastic
C) Good Y is a normal good
D) Good X is an inferior good
The price elasticity of demand is calculated as: *
A) the change in price divided by the change in quantity demanded.
B) the change in quantity demanded divided by the change in price.
C) the percentage change in price divided by the percentage change in quantity demanded.
D) the percentage change in quantity demanded divided by the percentage change in price.

In: Economics

Fill out table and show all calculations Final             Volume of              Volume of      &n

Fill out table and show all calculations

Final             Volume of              Volume of               Volume of       Final volume (uL)

[PNPP] mM   0.5mM PNPP(ul)   0.2M Tris-HCl(ul)   enzyme (uL)

0.01                                                                            100                        1500

0.02                                                                             100                       1500

0.04                                                                             100                         1500

0.06                                                                            100                            1500

0.08                                                                            100                              1500

0.1                                                                           100                             1500

0.2                                                                              100                               1500

0.3                                                                           100                               1500

0.4                                                                             100                                1500

In: Chemistry

1. Calculate Revenues, COGS, Gross Profit and Gross Margin in year 2 based on the following:...

1. Calculate Revenues, COGS, Gross Profit and Gross Margin in year 2 based on the

following:

Yr. 1

Revenues 500

COGS 400

Gross Profit 100

Gross Margin 20%

Sales rise 5%, 3% due to increase in volume and 2% due to increase in price. COGS is 80% variable.

2. What is the primary driver of sales growth for the following company? Explain.

Assume COGS is 60% variable.

Yr. 1 Yr. 2

Revenues 800    850

COGS 500 519

Gross Profit 300 331

Gross Margin 37.5% 38.9%

In: Finance

On January 1, you sold short 100 shares of XYZ stock at $20 using a 50%...

On January 1, you sold short 100 shares of XYZ stock at $20 using a 50% initial margin. The interest rate on the margin account is 10% annually. On April 1 (in three-months), you covered the short sales by buying stock at a price of $15 per share. You paid 50 cents per share in commissions for each transaction. Assume you received interest on all your assets, i.e. the sum of the short sale proceeds and the margin.
1. What is the value of your assets and equity on April 1?
2. What is the total rate of return on equity?

In: Finance

On January 1, you sold short 100 shares of XYZ stock at $20 using a 50%...

On January 1, you sold short 100 shares of XYZ stock at $20 using a 50% initial margin. The interest rate on the margin account is 10% annually. On April 1 (in three-months), you covered the short sales by buying stock at a price of $15 per share. You paid 50 cents per share in commissions for each transaction. Assume you received interest on all your assets, i.e. the sum of the short sale proceeds and the margin.
1. What is the value of your assets and equity on April 1?
2. What is the total rate of return on equity?

In: Finance

On January 1, you sold short 100 shares of XYZ stock at $20 using a 50%...

On January 1, you sold short 100 shares of XYZ stock at $20 using a 50% initial margin. The interest rate on the margin account is 10% annually. On April 1 (in three-months), you covered the short sales by buying stock at a price of $15 per share. You paid 50 cents per share in commissions for each transaction. Assume you received interest on all your assets, i.e. the sum of the short sale proceeds and the margin.
1. What is the value of your assets and equity on April 1?
2. What is the total rate of return on equity?

In: Finance

1. Show the effect of people becoming more patient in the BOND MARKET. (Note: this is...

1. Show the effect of people becoming more patient in the BOND MARKET. (Note: this is not the same as the loanable funds market.....Well, it kind of IS the same market, but it's not the same graph! Come on man, just think about it....)

2. Consider the equation of exchange. (Use the version with the values NOT the rates of change.) Let's assume that velocity is constant at 3, the money supply is 4,000. Give the price level that goes with each of the following levels of real output. Then plot them on a graph and draw a line through them. This curve will be back in a later episode.

Y          100                   200                       300                       400                        500                    600

In: Economics

A monopolist faces the following demand curve, marginal revenue curve, total cost curve and marginal cost...

A monopolist faces the following demand curve, marginal revenue curve, total cost curve and marginal cost curve for its product: Q = 200 ; MR = 100-Q ; TC = 5Q ; MC = 5

a) Suppose that a tax of $5 for each unit produced is imposed by state government. What is the profit maximizing level of output?

b) Suppose that a tax of $5 for each unit produced is imposed by state government. What is the profit maximizing price?

c) Suppose that a tax of $5 for each unit produced is imposed by state government. How much profit does the monopolist earn?

In: Economics

A monopolist faces the following demand curve, marginal revenue curve, total cost curve and marginal cost curve for its product: Q= 200-2P MR=100-Q TC=5Q MC=5

A monopolist faces the following demand curve, marginal revenue curve, total cost curve and marginal cost curve for its product: Q= 200-2P MR=100-Q TC=5Q MC=5

a) Suppose that a tax of $5 for each unit produced is imposed by state government. What is the profit maximizing level of output?

b) Suppose that a tax of $5 for each unit produced is imposed by state government. What is the profit maximizing price?

c) Suppose that a tax of $5 for each unit produced is imposed by state government. How much profit does the monopolist earn?

In: Economics

Michael lives on an island and owns a beach house worth $400,000. Of that, $100,000 is...

Michael lives on an island and owns a beach house worth $400,000. Of that, $100,000 is the cost of land and $300,000 is the cost of the structure. The probability that a hurricane destroys his house is 3 percent (he will still own the land). Michael can purchase hurricane insurance at the price of $2 for each $100 of coverage.

1. What is Michael’s contingent consumption bundle if Michael does not purchase insurance?

2. What is Michael’s contingent consumption bundle if Michael purchases $300,000 of insurance coverage?

3. Derive the equation of Michael’s budget constraint.

4. Plot Michael’s budget constraint on the graph.

In: Economics