EBK MACROECONOMICS (FOURTH EDITION)
4th Edition
ISBN: 9780393616125
Author: Jones
Publisher: YUZU
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Question
Chapter 17, Problem 7E
(a)
To determine
Compute the value of stock for each of the cases.
(b)
To determine
The effect of increase in the growth rate of dividends when it is closer to the rate of interest.
(c)
To determine
The price earning ratio in the stock market.
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Students have asked these similar questions
The following table shows worldwide sales of a certain type of cell phone and their average selling prices in 2012 and 2013.
Year
2012
2013
Selling Price ($)
395
325
Sales (millions)
741
1,133
(a) Use the data to obtain a linear demand function for this type of cell phone. (Let p be the price, and let q be the demand).
q(p) =
Use your demand equation to predict sales if the price is lowered to $255.
million phones
(b) Fill in the blank.
For every $1 increase in price, sales of this type of cell phone decrease by
million units.
A company estimates that it will sell N(x) units of a product after spending $x thousand on advertising, as given by N(x) = -0.25x +22x³-432x² + 75,000, where 18 ≤x≤ 48.
When is the rate of change of sales increasing and when is it decreasing? What is the point of diminishing returns and the maximum rate of change of sales? Graph N and N' on the same coordinate system.
The rate of change of sales is increasing on
(Type your answer in interval notation.)
GEZET
Variables typically included in a multivariate demand function (other than the price and quantity of the item the demand function represents) are consumer tastes and preferences, the number of buyers, spendable (disposable) income, prices of substitute goods, prices of complementary goods, advertising expenditures, weather, and expectations. Recalling that the price of the item being considered is placed on the vertical axis, and the quantity on the horizontal axis, the other variables are termed demand shifters. Please answer the following questions about the affect changes in other variables might have on the demand for the item. These changes will either cause demand to increase (shift right) or decrease (shift left). Use either word as applicable, for the short answer.
If the price of a good increases because the demand for it increases, What would you expect the demand for its complement to do?
If the demand for coffee beans increases, then what is likely to happen…
Chapter 17 Solutions
EBK MACROECONOMICS (FOURTH EDITION)
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