Suppose Johnny Stroller sells 12, 25, and 75 year-old scotch in under black, red, and blue labels. Suppose the storage costs are zero and the initial production costs are the same. What is the implied (approximate) interest rate if black sells for $12, red for $16 and blue for $44
a. 2
b. 5
c. 8
d. 10
a
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Economics is best defined as the science of choice and how people cope with
A) differences in wants. B) differences in needs. C) scarcity. D) different economic systems.
Airline regulation by the CAB kept prices the same on any route and also set prices high. This led airlines to offer high quality service, which raised costs to the level of prices
Indicate whether the statement is true or false
A decline in demand in a competitive industry will result in
a. a decrease in equilibrium price b. a decline in the number of firms in the industry c. economic losses for some firms in the industry d. a decline in the equilibrium quantity e. all of the above
If people expect inflation to increase in the future, explain what will happen to consumption and saving