 # Questions PA1-3.docx - Using the graph below develop a 2-...

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Using the graph below, develop a 2- to 4-page response in APA format using the followingthree-question prompt:Question 1What is the maximum amount you would pay for an asset that generates an income of\$250,000 at the end of each of five years if the opportunity cost of using funds is 8 percent?Question 2Suppose the supply function for product X is given by Qxs = −30 + 2Px − 4Pz. (LO1)How much of product X is produced when Px = \$600 and Pz = \$60?How much of product X is produced when Px = \$80 and Pz = \$60?Suppose Pz = \$60. Determine the supply function and inverse supply function forgood X. Graph the inverse supply function.Question 3Suppose the own price elasticity of demand for good X is −5, its income elasticity is −1, itsadvertising elasticity is 4, and the cross-price elasticity of demand between it and good Y is 3.Determine how much the consumption of this good will change if:The price of good X decreases by 6 percent.
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Term
Spring
Professor
NoProfessor
Tags
60, 6 percent, 2 percent, 3 percent
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