Answer:
A. Estimate the apartment rental demand curve assuming that it is linear and that price is expressed as a function of output.
the demand curve's slope = -10 / 1 = -10
demand curve = a - 10b
since all 100 units will be rented when p = $900
900 = a - 10(100)
900 = a - 1,000
1,900 = a
demand curve = 1,900 - 10b
B. Calculate the revenue-maximizing apartment rental rate. How much are these maximum revenues
we must first fin total revenue and then find hte derivative
total revenue = p x a
total revenue = (1,900 - 10a) x a
total revenue = 1,900a - 10a²
revenue maximizing quantity' = 1,900 - 20a
20a = 1,900
a = 95 apartments rented
price = 1,900 - (95 x 10) = $950
total revenue = $950 x 95 = $90,250
Answer:
The utility-maximizing rule suggests that this consumer should: Increase consumption of product Y and decrease consumption of product X
Explanation:
Answer: Recession; Depression; Peak ; Trough
Explanation:
The business cycle is the short-term movement of the economy as it goes in and out of recession.
A recession is the significant decline in the national output. Die to recession, there are less consumption by consumers and this negatively affects the national output.
A depression is a lengthy and deep decline in the output of an economy. When there's a long time contractions in economic activities, depression has taken place.
A peak is the highest point of output before the start of a recession. It is when growth and reached its maximum rate in an economy.
Trough is the lowest point of output when there is a recession. It is the lowest point when there's a decline in economic activities.
Answer:
rise by $40 billion
Explanation:
Calculation to determine what the investment will be
Investment=$100 billion*(100%-60%)
=$100 billion*40%
=$40 billion
Therefore the investment will rise by $40 billion
Answer:
lagged effect
Explanation:
The lagged effect in advertising refers to a situation where continuous exposure to an advertisement will increase consumer awareness of the advertised product and eventually lead to the purchase of the product.
In Julie's case, it is the first time she sees a billboard advertising the South of the Border Restaurant and Motel, so the lagged effect is not present yet. She would need to see a lot more billboards before starting to consider eating or staying at that place.
