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The year is 2007, and the price elasticity of driving on the Dulles Toll Road is 1.6. The owners of the Dulles Toll Road raise the cost of a one way trip to $8.50. The revenue from the toll increase is not as large as the owners forecasted. Should they have set a lower or higher toll? Higher, because demand is elastic

Economics Question

I need help with this question. I think the customer will carry the burden but not sure. I believe the answer has something to do with elasticity as well. Not sure how to tie it all together. Question: Who would bear the brunt of a national sales tax on tobacco products? Why?

Calculating Quantity Demanded and Determining Demand Curve

Gurgling Springs, Inc., is a bottler of natural spring, Inc. is a bottler of natural springs water distributed throughout the New England states. Five-gallon containers of GSI spring water are regionally promoted and distributed through grocery chains. Operating experience during the past year suggests the following demand fun

Source Bias

New source bias can exist for stationary sources. Discuss why this bias leads to a solution that is not cost effective. What policies might eliminate this bias?

Opportunity Cost

The New York Times, a profit maximizing newspaper, faces a downward-sloping demand schedule for advertisements. When advertising for itself in its own pages, (for example, an ad saying "READ MAUREEN DOWD IN THE SUNDAY TIMES"), is the opportunity cost of a given-size ad simply the price it charges its outside advertisers?


1. Resources are A. scarce for households but plentiful for economies. B. plentiful for households but scarce for economies. C. scarce for households and scarce for economies. D. plentiful for households and plentiful for economies. 25. Ben bakes bread and Shawna knits sweaters. Ben likes to eat bread and wear swea

Linear Programming

Graphically solve the following problems Maximize Profit Z= $4X1+$6X2 Subject to 1X1+2X2 ≤ 8 6X1+4X2 ≤ 24 a). What is the optimal solution? b) If the first constraint is altered to 1X1+3X2 ≤ 8, does the feasible region or the optimal solution change? See attached file for full problem descri


Which of the following combination of inputs is most closely reflective of decreasing marginal rate of technical substitution (MRTS)? a. oil and natural gas b. sugar and high fructose corn syrup c. computers and clerks d. keyboards and computers Which of the following is the best example of two inputs that would

Point Elasticity

3. The demand equation for a product is given by P =30 - 0.1Q² a. Write an equation for the point elasticity as a function of quantity. b. At what price is demand unitary elastic?

Graph the MSB and MSC functions

It is well documented that the carbon monoxide (CO) emissions from combustible engines increase in colder climates. This implies that the associated damages are expected to be less severe in summer months than in winter. Nonetheless, air quality control authorities use a standard for CO that is uniform throughout the year with

Compare the effect of this increase on the demand

Suppose that there is a general increase in incomes. Compare the effect of this increase on the demand faced by the following two chains: a. Marriott, a four star hotel chain with properties throughout the world. b. Motel 6, a chain of low priced hotels.

GDP Figures

See attached file for full problem description.

Dividend yields and expected capital gains

Based on current dividend yields and expected capital gains, the expected rates of return on portfolios A and B are 11% and 14%, respectively. The beta of A is 0.8, while that of B is 1.5. The T-bill rate is currently 6%, whereas the expected rate of return of the S&P 500 index is 12%. The standard deviation of portfolio A is 10

Cash Flow

The cash flow data of Palomba Pizza Stores for the year ended December 31, 2001, are as follows: Cash payment of dividends $ 35,000 Purchase of land 14,000 Cash payments for interest 10,000 Cash payments for salaries 45,000 Sale of equipment 38,000 Retirement of common stock 25,000 Purchase of equipment 30,000 C

Economics of internet

You want to calculate the cluster coefficient for your own email contact list. That is, the set of names in your email address book is the relevant social network for your calculation Compose an email that you could send to each of these individuals asking for the data you would need to complete the calculation of the cluster c

SPAM Levels for Profitability.

You are the most despised of characters - a spammer. SPAM Levels for Profitability. See attached file for full problem description.

Coupon rate, current yield, yield to maturity

Company A is selling bonds paying $105 annually that will mature 10 years from today. The bond is currently selling for $970, the face value of the bond is $1000. Calculate: -coupon rate -current yield -yield to maturity

BE point & contribution margin

Sales ( 30,000 caps @ $50)- 1,500,000 Less vairable expenses- 900000 contribution margin- 600000 less fixed expenses- 280000 net income- 320000 Find the contribution margin and the break even point in both units and dollars.

Opportunity and economic cost problem

Define opportunity costs, accounting costs and economics costs. Solve this problem: You must choose between sports training or working full time. If you choose sports training, you will have less of a social life. You will also pay $20,000 per year for training, but you will get a $15,00 grant. Food and rent is $10,000 a yea

Assumptions amd rational economics

I need some assistance to the questions below. Please help. Thank you. Economists are often criticized for making assumptions. Why are assumptions necessary? To think about this, you might consider an assumption that is often made: people are ratonal. Do you think that people are rational, and how could you construct a model

Economics of education: school vouchers

I have to compare and contrast universal and targeted educational vouchers programs for grades K-12 in the united states. I am not able to find any information on these two specific types of school vouchers.

Using visual analysis to measure the effects of intervention

Page 219 1.- Visual analysis is used to communicate the impact of an intervention in visual form. What are the three primary ways that the pattern of scores established during a baseline or intervention stage may be viewed? When is each of them best used? What information is conveyed and what information may be omitted by ch

GDP and Price Index

Suppose nominal GDP of $566 billion in 1992, $600 billion in 1993, and $642 billion in 1994. If 1992 is the base year, the prise index is 105 in 1993, and real growth in 1994 is 3 percent, what is the price index in 1994?

A) What is the economic life of the machine? b) What is the equivalent annual cost over that life? Now assume that the MARR is 5%. c) What is the economic life of the machine? d) What is the equivalent annual cost over that life? e) Explain the effect of decreasing the MARR.

A certain machine costs $25,000 to purchase and install. It has salvage values and operating costs as shown in the table in the attached file. The salvage value of $20,000 listed at time 0 reflects the loss of the installation costs at the time of installation. The MARR is 12%. Life in Years Salvage value Operating cost 0 $2

Economics help

Tennis Products, Inc., produces three models of high-quality tennis rackets. The following table contains recent information on th4e sales, costs, and profitability of the three models: Model Average Quantity Sold (Units/month) Current Price Total Revenue Variable Cost per unit Contribution margin per unit Contribution Marg