Katie is planning to sell her house, and she is considering making two upgrades to the house before listing it for sale. Replacing the carpeting will cost her $2,500 and replacing the roof will cost her $9,000 . Katie expects the new carpeting to increase the value of her house by $3,000 and the new roof to increase the value of her house by $7,000
a. She should make both improvements to her house.
b. She should replace the carpeting but not replace the roof.
c. She should replace the roof but not replace the carpeting.
d. She should not make either improvement to her house.
b
You might also like to view...
Could an increase in urban bus fares eventually lead to an increase in the demand for bus service?
A) It could not do so, though it could lead to a reduction in the demand for bus service. B) It could not do so, though it would probably lead to a reduction in the quantity of bus service demanded. C) It might do so if increasing the demand for and price of downtown parking increased even more. D) It might do so by making the demand for bus service unit elastic. E) Only in cities where the demand for bus service slopes upward to the right.
An example of opportunity cost:
a. is the Chinese food that you gave up when you chose to eat Italian food. b. is the tuition that you pay to attend college. c. for a professor of economics is the pleasure that he or she derives from teaching economics. d. is sweets given up by a person who would never eat them even if he or she could. e. is the amount spent on buying movie tickets.
With careful planning, we can usually get something that we like without having to give up something else that we like
a. True b. False Indicate whether the statement is true or false
When a demand curve is linear:
A. the elasticity is constant at all prices. B. demand is inelastic at low prices. C. demand is elastic at low prices. D. demand is unitary elastic at low prices.