Macroeconomics (Fourth Edition)
4th Edition
ISBN: 9780393603767
Author: Charles I. Jones
Publisher: W. W. Norton & Company
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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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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 +22x³-472.5x² +83,000, where 21 ≤x≤45.
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
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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
Macroeconomics (Fourth Edition)
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