Suppose apartments are in four locations: Location A, Location B, Location C, and Location D. Location A is in the city, where your job is. LocationB is 10 minutes farther from your job than Location A. Location C is 10 minutes farther from your job than Location B, and Location D is 10 minutesfarther than Location C. In turn, similar apartments in Location B rent for $115 less per month than apartments in Location A, apartments in LocationC rent for $115 less than in Location B, and apartments in Location D rent for $115 less than in Location C. Suppose the value of your time is $18per hour and you work 21 days per month, with each day requiring a round-trip commute from your apartment to work.For simplicity, assume rent and the opportunity cost of your time commuting to work are the only factors influencing the location in which to rent anapartment.You should rent an apartment inSuppose you currently rent an apBy moving to optimize, you chang(Enter your response as an integer.)Location DLocation BLocation CLocation A Suppose apartments are in four locations: Location A, Location B, Location C, and Location D. Location A is in the city, where your job is. LocationB is 10 minutes farther from your job than Location A. Location C is 10 minutes farther from your job than Location B, and Location D is 10 minutesfarther than Location C. In turn, similar apartments in Location B rent for $115 less per month than apartments in Location A, apartments in LocationC rent for $115 less than in Location B, and apartments in Location D rent for $115 less than in Location C. Suppose the value of your time is $18per hour and you work 21 days per month, with each day requiring a round-trip commute from your apartment to work.For simplicity, assume rent and the opportunity cost of your time commuting to work are the only factors influencing the location in which to rent anapartment.You should rent an apartment inSuppose you currently rent an apartment in Location B.By moving to optimize, you change your net benefit by $: (Enter your response as an integer.)

Answers: You should rent an apartment in Location A You change your net benefit by $11

Answered: Suppose apartments are in four…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Suppose that the typical consumer has a salary of $30,000 in 2017. His salary grows by 2% per year. What can we say about his ability to pay for his consumption basket over time?
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(Saving,investment) is the source of the demand for loanable funds. As the interest rate falls, the quantity of loanable funds demanded (decreases, increase). Suppose the interest rate is 4.5%. Based on the previous graph, the quantity of loanable funds supplied is (greater,less) than the quantity of loans demanded, resulting in a (surplus,shortage) of loanable funds. This would encourage lenders to (raise,lower) the interest rates they charge, thereby (increasing, decreasing) the quantity of loanable funds supplied and (increasing, decreasing) the quantity of loanable funds demanded, moving the market toward the equilibrium interest rate of ______%.
Tim lives in Vancouver and runs a business that sells pianos. In an average year, he receives $733,000 from selling pianos. Of this sales revenue, he must pay the manufacturer a wholesale cost of $433,000; he also pays wages and utility bills totalling $257,000. He owns his show room; if he chooses to rent it out, he will receive $13,000 in rent per year. Assume that the value of this show room does not depreciate over the year. Also, if Tim does not operate this piano business, he can work as a paralegal, receive an annual salary of $23,000 with no additional monetary costs, and rent out his show room at the $13,000 per year rate. No other costs are incurred in running this piano business.
Find the level of savings when consumption is $610 and the income is $111
Kenji lives in Mississauga and runs a business that sells pianos. In an average year, he receives $723,000 from selling pianos. Of this sales revenue, he must pay the manufacturer a wholesale cost of $423,000; he also pays wages and utility bills totalling $267,000. He owns his show room; if he chooses to rent it out, he will receive $2,000 in rent per year. Assume that the value of this show room does not depreciate over the year. Also, if Kenji does not operate this piano business, he can work as a financial advisor, receive an annual salary of $20,000 with no additional monetary costs, and rent out his show room at the $2,000 per year rate. No other costs are incurred in running this piano business. Identify each of Kenji's costs in the following table as either an implicit cost or an explicit cost of selling pianos. Implicit Cost The wages and utility bills that Kenji pays The salary Kenji could earn if he worked as a financial advisor The rental income Kenji could receive if he…
What is the difference between Interest Accrued and Interest Expense? Can you give me a simple definition and example to understand this concept? Thank you.
James has a wage income of $50.000 in the present and $200.000 in the future. His utility is given as U = min (2Cp, Cr) - that is, his utility is the lesser of twice the dollars spent on present consumption or the dollars spent on future consumption. The interest rate is 30%. (A) What is the minimum amount of money James would be willing to accept today to have the interest rate at 40% rather than 30%? Explain and show work (B) What is the maximum amount of money James would pay today to have the interest rate at 30% rather than 40%? Explain and show work
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4. Reid earns $14 per hour and works 44 hours per week. If he does not want to spend more than 30% of his income on rent, what is the maximum monthly rent that he can afford? Assume a 4-pay month.
Give typing answer with explanation and conclusion

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