Utility Problem Set

1. Suppose that the price of good X is $5 per unit and the price of good Y is $2 per unit. In addition, suppose that your income is $25

If you spend all your money on good X, how many units can you buy?

2. The table below shows total utility for two products. Suppose that the price for product X is $5 and the price for product B is $2.

Given this data, complete the table below:

Use the information above to answer questions 3 and 4:

The table below shows total utility for two products. Suppose that the price for product X is $5 and the price for product Y is $2.

3. Suppose that a person has $25.

How many units of each good should she buy to maximize her happiness given her budget constraint? Why?

4. Suppose income falls to $18. How many units of each good should she buy to maximize her happiness given her budget constraint? Why?

1. Suppose you negotiate a selling price of $29,995 for a Ford Explorer. You make a down payment of 10% of the selling price and finance the remaining balance for 5 years at an annual interest rate of 8.3%. The sales tax is 8.3% of the selling price, and the license fee is 0.4% of the selling price. Find the monthly payment. (Round your answer to the nearest cent.)

$ _________

2. A mutual fund has $600 million worth of stock, $600,000 in cash, and $1 million in other assets. The fund's total liabilities amount to $2 million. There are 10million shares outstanding. You invest $9,000 in this fund. How many shares are you purchasing? (Round your answer down to the nearest whole number.)

_________ shares

3. A credit card account had a $285 balance on March 5. A purchase of $181 was made on March 12, and a payment of $100 was made on March 28. Find the average daily balance if the billing date is April 5. (Round your answer to the nearest cent.)

$ ________

4. Use the given partial stock table. Round dollar amounts to the nearest cent when necessary.

Consider the following for Boeing (BA).

(a) What is the difference between the highest and lowest prices paid for this stock during the last 52 weeks?

$ _______

(b) Suppose that you own 850 shares of this stock. What dividend do you receive this year?

$ _______

(c) How many shares of this stock were sold during the trading day?

_______ shares

(d) Did the price of a share of this stock increase or decrease during the day shown in the table?

1-increase

2- decrease   

(e) What was the price of a share of this stock at the start of the trading day?

$ _______

Issuing stock. Remember that the account “Common Stock” represents the “par” value of the common stock issued over the life of the company.   The Common stock or Preferred stock account is increased (credited) by the product of the number of shares times the par value of those shares. If the stock is issued at par, this will equal the amount of cash received. Note—Par value equals issue price. When stock is issued at an amount higher than par, the “extra” amount is credited to Additional Paid-in-Capital account. The cash received will equal the number of shares issued times the issue price.

Assume 5,000 shares with $10 par value were issued for a price of $15, complete the journal entry to record the issuance of shares. Note – par value DOES NOT equal issue price.

dr. Cash_____________( # of shares times issue price )

cr. Common Stock_______________( # of shares times par value)

cr. Additional Paid in Capital_______________(Cash minus Common stock)

Assume 50,000 shares of $1 par value common stock were issued for a price of $52 per share, write the journal entry. Remember to use APIC for the amount that the issue price exceeds the par value.

Assume 2,500 shares of its $30 par value common stock were issued for a price of $84 per share. Write the journal entry.

Assume 30,000 shares of $100 par value Preferred stock was issued at par value. Write the journal entry. Note – If stock is issued at par value, the issue price equals the par value of the stock. Use “Preferred Stock” account if it is preferred stock that is issued.

Sometimes shares may be issued in exchange for another asset other than cash. When this happens, the fair market value of the asset exchanged is used to represent the issue price and the appropriate account is debited. A company issued 60,000 share of $5 par value common stock in exchange for an office building with a fair market value of $800,000. Complete the journal entry for the transaction.

dr. Building____________________(fair market value)

cr. Common Stock_______________________ (# of shares times par value)

cr. APIC________________________ (difference)

The Wii was a huge success worldwide right from the get-go. In the U.S., demand for the Wii outpaced supply from November 2006 through June 2007. A similar story played out in many other countries and regions as well. The U.K. suffered

shortages until March of 2007 and in Australia the Wii became the fastest-selling game console in Australian history. In anticipation of the holiday season, Nintendo increased production between October and December 2008. Its worldwide production increased from 1.6 million per month in 2007 to 2.4 million per month. However, demand for the Wii continued to remain high and it was not until March of 2009 that the Wii was available for walk-in purchases at retail stores in the U.S. At this point, 48 million Wii consoles had been sold.

Profit

Even with at a lower price point, Nintendo directly profited from each sale of a Wii console. In 2006 and 2007, for each unit sold in the U.S. Nintendo made $49. They claimed to do this by optimizing production costs. In contrast, Microsoft (Xbox) and Sony (PlayStation 3) rely on software sales to produce a long-term profit and generally lose money on the sale of the consoles. Nintendo’s optimization strategy worked. Even after robust years in 2007 and 2008, both operating profits and sales increased in 2009, and 2009 earnings beat 2008 earnings.

Price Drop

In 2009, sales of the Wii console declined until September when Nintendo decided to drop the price for the Wii console to $199.99. This was the first price drop and proved to be effective at generating additional demand. In December of 2009, over three million Wii consoles were sold in the U.S., which set a record for monthly sales in the U.S. Further, the record setting sales in the month of December pushed the Wii to become Nintendo’s best-selling home video console, selling over 67 million units at that point. To date, the Wii remains Nintendo’s best-selling console, having sold over 100 million units worldwide.

1. Was the severe shortage for over two years an old marketing ploy called intentional scarcity, in which a company purposely keeps its hot product in short supply to build buzz? Or was it simply bad planning on Nintendo's part? Explain your answer and include some outside research to support your conclusion. (20 points)

2. Can you suggest a reason why Nintendo dropped the price of the Wii Console in late 2009? How would you expect this to affect demand and revenues? (15 points)

3. Elasticity of supply and demand can change over time. In 2009, would you describe demand for the Wii as elastic or inelastic? What about supply? Provide an explanation for your answers. (15 points)

4. Draw the demand and supply curves for the Nintendo Wii in 2009 as you have described in number 6. (10 points)

CIS 1068 Assignment 6
practice with static methods and arrays

Implement each of the following functions and write a basic main() function that tests each.

public class ArrayPractice {
  /* sets every item in the array A references to initialValue */
  public static void initialize(int A[], int initialValue) {
    ;
  }

  /*
   * returns the average of the items in the array A references. Be careful: the array contains int
   * but the method returns double. What do we do to handle this?
   */
  public static double average(int A[]) {
    return 0.0;
  }

  /* returns the number of times that x appears in the array A references */
  public static int numOccurrences(int A[], int x) {
    return 0;
  }


  /*
   * returns the index of the first occurrence of x in the array A references or -1 if x doesn't
   * exist in the array
   */
  public static int find(int A[], int x) {
    return -1;
  }

  /*
   * Returns the index of the first occurrence of item within the first n elements of the array A[]
   * references or -1 if item is not among the first n elements of the array
   */
  public static int findN(int A[], int item, int n) {
    return -1;
  }

  /*
   * returns the index of the last occurrence of x in the array A references or -1 if x doesn't
   * exist in the array
   */
  public static int findLast(int A[], int x) {
    return -1;
  }

  /* returns the largest item found in the array A references */
  public static int largest(int A[]) {
    return 0;
  }

  /* returns the index of the largest item found in the array A references */
  public static int indexOfLargest(int A[]) {
    return 0;
  }

  /*
   * returns the index of the largest odd number in the array A references or -1 if the array
   * contains no odd numbers
   */
  public static int indexOfLargestOdd(int A[]) {
    return -1;
  }

  /*
   * returns a new array consisting of all of the elements of A[]
   */
  public static int[] copy(int A[]) {
    return null;
  }

  /*
   * Returns a reference to a new array consisting of all of the first n elements of A[]. If
   * n>A.length, returns a reference to a new array of size n, with the first A.length elements
   * exactly the same as A, and the remaining n-A.length elements set to 0. If n<=0, returns null.
   */
  public static int[] copyN(int A[], int n) {
    return null;
  }

  /*
   * returns a reference to an array consisting of all of the elements of the array A references
   * that are odd. If there are no odd integers in the array, the function returns null.
   */
  public static int[] copyOdds(int[] A) {
    return null;
  }

  /* removes and returns the item at index x shifting all elements at */
  /* indices > x one position to the left and filling in a 0 at the */
  /* right-most position in the array. */

  /* if x is an invalid index, returns -1. */

  /* For example, if before we call function with x = 2, */
  /* the the array is: */

  /* |----+----+----+----+----+----+----+----+----+-----| */
  /* | 10 | 20 | 30 | 40 | 50 | 60 | 70 | 80 | 90 | 100 | */
  /* |----+----+----+----+----+----+----+----+----+-----| */

  /* after the function finishes, the array is: */

  /* |----+----+----+----+----+----+----+----+-----+---| */
  /* | 10 | 20 | 40 | 50 | 60 | 70 | 80 | 90 | 100 | 0 | */
  /* |----+----+----+----+----+----+----+----+-----+---| */

  /* and the function returns 30 */
  public static int remove(int[] A, int x) {
    return -1;
  }


  /* shifts all elements of the array A references one position to the left, */
  /* removing the first element and filling in 0 from the right hand side. */

  /* For example, if before we call the function the the array is: */

  /* |----+----+----+----+----+----+----+----+----+-----| */
  /* | 10 | 20 | 30 | 40 | 50 | 60 | 70 | 80 | 90 | 100 | */
  /* |----+----+----+----+----+----+----+----+----+-----| */

  /* after the function finishes, the array is: */

  /* +----+----+----+----+----+----+----+----+-----|----| */
  /* | 20 | 30 | 40 | 50 | 60 | 70 | 80 | 90 | 100 | 0 | */
  /* +----+----+----+----+----+----+----+----+-----|----| */
  public static void shiftLeft(int[] A) {
    ;
  }


  /*
   * returns true if A is in sorted ascending order and false otherwise
   */
  public static boolean isSortedAscending(int[] A) {
    return false;
  }

  /* Returns the number of items in the array that A references starting at index x that are in */
  /* ascending sorted order. */

  /* For example, if the array is: */
  /* |----+----+---+---+---+---+----+----+----| */
  /* | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | */
  /* |----+----+---+---+---+---+----+----+----| */
  /* | 10 | 11 | 5 | 3 | 9 | 6 | 18 | 37 | 40 | */
  /* |----+----+---+---+---+---+----+----+----| */

  /* and x is 0, the function return 2, because 10 and 11 are in sorted order. */

  /* If x is 5, the function returns 4, because 6, 18, 37, and 40 are in sorted order. */

  /*
   * If x is 2, the function returns 1.
   * 
   */
  public static int sortedAscendingRun(int[] A, int x) {
    return -1;
  }

  /*
   * returns a new array consisting of all of the elements of A[] followed by all of the elements of
   * B[]. For example, if A[] is: {10,20,30} and B[] is: {5, 9, 38}, the method returns the array :
   * {10,20,30,5,9,38}
   */
  public static int[] copyAll(int A[], int B[]) {
    return null;
  }

  /*
   * reverses the order of the elements in A[]. For example, if A[] is: {10,20,30,40,50}, after the
   * method, A[] would be {50,40,30,20,10}
   */
  public static void reverse(int A[]) {
    ;
  }

  /*
   * Extra credit:
   *
   * Returns a new array consisting of all of the elements of A, but with no duplicates. For
   * example, if A[] is {10,20,5,32,5,10,9,32,8}, the method returns the array {10,20,5,32,9,8}
   */
  public static int[] uniques(int A[]) {
    return null;
  }
}

Please do this in Java, need it ASAP!

The price quotations of U.S. Treasury bonds show an ask price of 101.78 and a bid price of 101.49. If you want to buy one bond at the market price, what is the dollar price you expect to pay?

Do not round your answer.