Chapter 1 HW - The slope of the line would be -1 1A.3)...

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Chapter 1 Page 20-21 Exercises: 1.3, 1.8 Page 34 1A.1, 1A.3, 1A.5, 1A.6, 1A.7 Page 20 1.3) As explained throughout the chapter, it is less expensive for the bank to deal or manage with these bank robberies, than it is to actually install the “bandit barriers” . Therefore they prefer to not install the barriers. 1.8) We believe that since economics basically teaches how to look at the consequences, or trade-offs, that take place in every decision that one makes, all of these top managers and governmental leaders have the ability to understand and see the benefits and drawbacks of every decision taken. This prior knowledge in economics makes it a bit harder for them to take a bad decision. Page 34 1A.1) a) The relationship between the price of pies and the number of pies is negative because, as the price decreases the quantity increases. b) c)
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Unformatted text preview: The slope of the line would be -1 1A.3) Percent Change Formula: VALUE IN THE SECOND PERIOD VALUE IN THE FIRST PERIOD ( X100) VALUE IN THE FIRST PERIOD Period Percent Change Formula Answer 2001-2002 0% 2002-2003 [(6.7 7.0)/7.0] 100 =-4.3% 2003-2004 [(6.8 6.7)/6.7] 100 = 1.5% 2004-2005 0% 2005-2006 [(6.6 6.8)/6.8] 100 =-2.9% 2006-2007 0% 2007-2008 [(5.4 6.6)/6.6] 100 = 18.18 The period in which sales fell the fastest was 2007-2008 1A.5) a) b) At $2.50 per bottle, the total revenue is equal to ($2.50 x 100,000) = $250,000. On the other hand, at $1.50, the total revenue is equal to ($1.25 x 200,000) = $250,000. 1A.6) The area of the triangle is: 0.5 x 60,000 x 0.75 = 22,500 1A.7) Slope = Rise / Run At point A: (300-175) / (7-5) = (125/2) = 62.5 At point B: (900-700) / (14-12) = (200/2) = 100...
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This note was uploaded on 08/09/2011 for the course ECONOMICS --- taught by Professor --- during the Spring '11 term at Universidad Iberoamericana.

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Chapter 1 HW - The slope of the line would be -1 1A.3)...

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