A fast-food restaurant determines the cost and revenue models for its hamburgers.

29) The quantity associated with any particular price in a demand schedule tells us:
A) the demand for the product at that price
B) the quantity of the product demanded at that price
C) the quantity actually bought at that price
D) all of the above
30) The demand curve is a:
A) graphical representation of the quantity demanded at a given price
B) graphical representation of the various quantities that will remain unsold because buyers are
unwilling to pay the price
C) graphical representation of the various quantities that consumers will be willing and able to
buy at various prices
D) graph showing the various quantities that will be bought as income changes

31) The concept of elasticity applies to:
A) demand but not supply
B) supply but not demand
C) both demand and supply
D) macroeconomics, but not to concepts studied in microeconomics
32) Elasticity is:
A) the extent to which an item can stretch
B) the amount of price variability when income changes
C) the extent to which a firm can increase its output of goods and services
D) the extent to which one variable responds to a change in some other variable

Mrs. Fatima is 65 years old , celebrating her birthday . She is widow , lost her husband 6 month back . She lives alone but she has grandchildren who sometimes visit her She works as a school teacher . Everyone in the school was thanking her for her good work . Ali is a teacher working in the same school , he commented telling her that you are supposed to be at home by this age , you don't have enough strength to continue your career . Mrs. Fatma has changes in her health condition as now she becomes fatigued easily , she also experience shortness of breath when she walked a blocks , sometimes she experience gastritis

1. What do you think the major role changes Mrs. Fatma is experiencing? As a nurse how you can help her to cope with her new role?

2. As a nurse how you can prepare her for retirement?

A nutritionist at the Medical Center has been asked to prepare a special diet for

certain patients. She has decided that the meals should be prepared from Foods A and B and that they

should contain a minimum of 400 mg of calcium, 10 mg of iron, and 40 mg of vitamin C. Each ounce of Food

A contains 30 mg of calcium, 1 mg of iron, 2 mg of vitamin C, and 3 mg of cholesterol. Each ounce of Food

B contains 25 mg of calcium, 0.5 mg of iron, 5 mg of vitamin C, and 5 mg of cholesterol.

(1) How many ounces of each type of food should be used in a meal so that the cholesterol content is

minimized and the minimum requirements of calcium, iron, and vitamin C are met? What is the

minimum cholesterol content?

(2) By how much can the cholesterol content of Food A vary before the optimal solution changes?

(3) By how much can the cholesterol content of Food B vary before the optimal solution changes?

1. The science class was studying genetics at school and Arya came home in tears. She told her older sister, “We were doing our family tree and when I filled in our traits, I discovered that Mom and Dad can’t be my real parents ’cause the traits don’t match!” It turns out that Mom and Dad can roll their tongues but Arya can’t. Could Mom and Dad still be Arya’s parents?
2. Tyrion has smoked cigarettes for years and is having breathing difficulties. He has been diagnosed with emphysema. Describe specific kinds of structural changes you would expect to observe in Tyrion’s respiratory system. How are air flow and gas exchange affected by these structural changes?
3. Sansa was diagnosed with exercise-induced asthma after she reported trouble catching her breath during a swim meet. Exercise-induced asthma is a particularly annoying condition for an athlete because the body’s response to exercise is the exact opposite of the body’s need. Explain this statement.

Panamint Systems Corporation is estimating activity costs associated with producing disk drives, tapes drives, and wire drives. The indirect labor can be traced to four separate activity pools. The budgeted activity cost and activity base data by product are provided below.

The activity-based cost for each tape drive unit is

a.$701.81

b.$18.34

c.$276.11

d.$216.69

Suppose we had two stocks, A and B. Both are selling for $10 in the market. Stock A has an expected rate of return of 2%, while stock B has an expected rate of return for 6%.

(a)What is the expected income one would receive from holding Stock A? How about for Stock B?

(b)Given that their market prices are equal, which stock do you think incurs a greater amount of risk? Why?

Suppose the market changes, such that now the perceived risks of Stock A and B are identical (but the expected income one receives from holding the stock does not change from the values you calculated in (a)).

(c)Compared to the price of Stock B, will Stock A have a lower, higher, or same price? Why?

(d)How does the expected rate of return for Stock A compare to the expected rate of return for Stock B after the change in the market?

(e)Suppose, after the market changes, the price of Stock B remains at $10. What is the price of Stock A?

1. Use duration to explain the “negative convexity” exhibited by callable bonds. Why is negative convexity a “negative” attribute from the investor’s viewpoint?

2. What happens to the “average life” of a pool of mortgages when prepayment speed increases? Why does prepayment speed increase when interest rates decrease? Discuss the negative convexity exhibited by mortgage-backed “passthrough” certificates in the context of duration and pre-payment speed.

3. Suppose a financial institution currently has a positive duration gap. How would its net worth be expected to vary with changes in interest rates? Explain. Explain how a financial institution could “immunize” its net worth from changes in interest rates.

4. In the context of duration gap management (or asset/liability management), explain the difference one would expect to see in the duration of the assets of a life insurance company as opposed to a commercial bank, assuming both institutions want to immunize their exposure to interest rate risk.

Exercise 22-14 Carey Company had sales in 2016 of $1,560,000 on 60,000 units. Variable costs totaled $900,000, and fixed costs totaled $500,000. A new raw material is available that will decrease the variable costs per unit by 20% (or $3). However, to process the new raw material, fixed operating costs will increase by $100,000. Management feels that one-half of the decline in the variable costs per unit should be passed on to customers in the form of a sales price reduction. The marketing department expects that this sales price reduction will result in a 5% increase in the number of units sold. Prepare a projected CVP income statement for 2017: (a) assuming the changes have not been made. CAREY COMPANY CVP Income Statement Total Per Unit $ $ $ $ (b) assuming that changes are made as described. (Round per unit to 2 decimal places, e.g. 15.25.) CAREY COMPANY CVP Income Statement Total Per Unit $ $ $ $ LINK TO TEXT Question Attempts: 0 of 3 used SAVE FOR LATER SUBMIT ANSWER

Variable rate CD’s = $90 Treasury bills = $150 Discount Loans = $20 Treasury notes = $100 Fixed rate CDs = $160 Money Market deposit accts. = $140 Savings deposits = $90 Fed Funds borrowing = $40 Variable rate mortgage loans $140 Demand Deposits = $40 Primary Reserves = $50 Fixed rate loans = $210 Fed Funds Lending = $50 Equity Capital = $120 A. Develop a balance sheet from the above data. Be sure to divide your balance sheet into rate-sensitive assets and liabilities as we did in class and in the examples. B. Perform a Standard Gap Analysis and a Duration Analysis using the above data if you have a 1.15% decrease in interest rates and an average duration of assets of 5.4 years and an average duration of liabilities of 3.8 years. C. Indicate if this bank will remain solvent after the valuation changes. If so, indicate the new level of equity capital after the valuation changes. If not, indicate the amount of the shortage in equity capital.