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stellarik [79]
2 years ago
9

A new tax is put on luxury cars. Making them cost more to make. What happens to the supply of luxury cars?

Business
1 answer:
Leni [432]2 years ago
4 0
My best guess is the supply would go down, since many companies would be losing profit margins, and many others losing profitability all together.
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Answer:

I wouldn't invest.

Risk preference at least 50-50 chance of gain and loose

Explanation:

case of success the return i get is $40000

case of failure i lose $20000.

My analysis shows P40=0.3 of success

And P-20=0.7 of failure.

The probability of a loose is much bigger than the probability of a gain.

So I can't bear the loose of loosing 7 times if about 20000 and gaining 3 times of about 40000 it doesn't balance.

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3 years ago
All else constant, if butter and margarine are substitute goods, then as the price of butter rises,
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