CARLIN: ● Has been renting a two-bedroom apartment with her husband and 3 kids; wants to move into a three-bedroom home instead
● Took her five years, but she has saved $20,000 for a down payment
● Homes in her small town are typically selling for $75,000 to $95,000
● Is preapproved for a 3.89% interest rate on a 30-year fixed mortgage
● Needs her monthly payment to be less than $400

Rounded to the nearest $500, what’s the most expensive house Carlin could buy?

$95,500 - 100,000

$79,500-80,000

$70,050- 74,000

Your aunt is thinking about opening a hardware store. she estimates that it would cost $300,000 per year to rent the location and buy the stock. in addition, she would have to quit her $45,000 per year job as an accountant. a. define opportunity cost. b. what is your aunt's opportunity cost of running a hardware store for a year? if your aunt thought she could sell $350,000 worth of merchandise in a year, should she open the store? explain.

Recently, verizon wireless ran a pricing trial in order to estimate the elasticity of demand for its services. the manager selected three states that were representative of its entire service area and increased prices by 5 percent to customers in those areas. one week later, the number of customers enrolled in verizon's cellular plans declined 4 percent in those states, while enrollments in states where prices were not increased remained flat. the manager used this information to estimate the own-price elasticity of demand and, based on her findings, immediately increased prices in all market areas by 5 percent in an attempt to boost the company's 2016 annual revenues. one year later, the manager was perplexed because verizon's 2016 annual revenues were 10 percent lower than those in 2015"the price increase apparently led to a reduction in the company's revenues. did the manager make an error? yes - the one-week measures show demand is inelastic, so a price increase will decrease revenues. yes - the one-week measures show demand is elastic, so a price increase will reduce revenues. yes - cell phone elasticity is likely much larger in the long-run than the short-run. no - the cell phone market must have changed between 2011 and 2012 for this price increase to lower revenues.

Based on the supply and demand theory, why do medical doctors earn higher wages than child-care workers?