The difficulties that an economics professor might feel while purchasing a new car under a barter system.

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Answer 1

Question

Chapter 25, Problem 1P

To determine

To explain:

The difficulties that an economics professor might feel while purchasing a new car under a barter system.

Expert Solution & Answer

Explanation of Solution

There is a huge deficiency in the barter trade system. It creates hindrance in a proper or justified trade between the participants of the transaction. Lack of common medium of exchange like money, is one of the prominent hindrances in the barter system of trade. Apart from that, the unavailability of knowledge of the trade regarding different products or services to traders also creates non-accurate pricing decisions.

Lack of common unit to standardize product or service and justifiable standard unit to measure them under different scenario is also the reason behind the lack of popularity of the barter trade system.

To buy a car in a barter system, an economics professor may need such a trading partner who is willing to have economics lectures or economic advices in exchange of a car. This type of search can be very difficult and a lot of time of the professor can be wasted. Wastage of costs can also be an issue in locating this kind of partner. Thus, an economics professor can feel difficulties while purchasing a new car in a barter system.

Economics Concept Introduction

Barter System:

In trade, a barter system refers to the exchange of good and services without the use of common currency. The party directly exchanges goods and services with other goods and services.The coincidence of need is necessary in this situation.

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Problem 3 You are given the following demand for European luxury automobiles: Q=1,000 P-0.5.2/1.6 where P-Price of European luxury cars PA = Price of American luxury cars P, Price of Japanese luxury cars I= Annual income of car buyers Assume that each of the coefficients is statistically significant (i.e., that they passed the t-test). On the basis of the information given, answer the following questions 1. Comment on the degree of substitutability between European and American luxury cars and between European and Japanese luxury cars. Explain some possible reasons for the results in the equation. 2. Comment on the coefficient for the income variable. Is this result what you would expect? Explain. 3. Comment on the coefficient of the European car price variable. Is that what you would expect? Explain.

Problem 2: A manufacturer of computer workstations gathered average monthly sales figures from its 56 branch offices and dealerships across the country and estimated the following demand for its product: Q=+15,000-2.80P+150A+0.3P+0.35Pm+0.2Pc (5,234) (1.29) (175) (0.12) (0.17) (0.13) R²=0.68 SER 786 F=21.25 The variables and their assumed values are P = Price of basic model = 7,000 Q==Quantity A = Advertising expenditures (in thousands) = 52 P = Average price of a personal computer = 4,000 P. Average price of a minicomputer = 15,000 Pe Average price of a leading competitor's workstation = 8,000 1. Compute the elasticities for each variable. On this basis, discuss the relative impact that each variable has on the demand. What implications do these results have for the firm's marketing and pricing policies? 2. Conduct a t-test for the statistical significance of each variable. In each case, state whether a one-tail or two-tail test is required. What difference, if any, does it make to…

Answer 2

Question

Chapter 25, Problem 1P

To determine

To explain:

The difficulties that an economics professor might feel while purchasing a new car under a barter system.

Expert Solution & Answer

Explanation of Solution

There is a huge deficiency in the barter trade system. It creates hindrance in a proper or justified trade between the participants of the transaction. Lack of common medium of exchange like money, is one of the prominent hindrances in the barter system of trade. Apart from that, the unavailability of knowledge of the trade regarding different products or services to traders also creates non-accurate pricing decisions.

Lack of common unit to standardize product or service and justifiable standard unit to measure them under different scenario is also the reason behind the lack of popularity of the barter trade system.

To buy a car in a barter system, an economics professor may need such a trading partner who is willing to have economics lectures or economic advices in exchange of a car. This type of search can be very difficult and a lot of time of the professor can be wasted. Wastage of costs can also be an issue in locating this kind of partner. Thus, an economics professor can feel difficulties while purchasing a new car in a barter system.

Economics Concept Introduction

Barter System:

In trade, a barter system refers to the exchange of good and services without the use of common currency. The party directly exchanges goods and services with other goods and services.The coincidence of need is necessary in this situation.

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Answer 3

Question

Chapter 25, Problem 1P

To determine

To explain:

The difficulties that an economics professor might feel while purchasing a new car under a barter system.

Expert Solution & Answer

Explanation of Solution

There is a huge deficiency in the barter trade system. It creates hindrance in a proper or justified trade between the participants of the transaction. Lack of common medium of exchange like money, is one of the prominent hindrances in the barter system of trade. Apart from that, the unavailability of knowledge of the trade regarding different products or services to traders also creates non-accurate pricing decisions.

Lack of common unit to standardize product or service and justifiable standard unit to measure them under different scenario is also the reason behind the lack of popularity of the barter trade system.

To buy a car in a barter system, an economics professor may need such a trading partner who is willing to have economics lectures or economic advices in exchange of a car. This type of search can be very difficult and a lot of time of the professor can be wasted. Wastage of costs can also be an issue in locating this kind of partner. Thus, an economics professor can feel difficulties while purchasing a new car in a barter system.

Economics Concept Introduction

Barter System:

In trade, a barter system refers to the exchange of good and services without the use of common currency. The party directly exchanges goods and services with other goods and services.The coincidence of need is necessary in this situation.

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Answer 4

Question

Chapter 25, Problem 1P

To determine

To explain:

The difficulties that an economics professor might feel while purchasing a new car under a barter system.

Expert Solution & Answer

Explanation of Solution

There is a huge deficiency in the barter trade system. It creates hindrance in a proper or justified trade between the participants of the transaction. Lack of common medium of exchange like money, is one of the prominent hindrances in the barter system of trade. Apart from that, the unavailability of knowledge of the trade regarding different products or services to traders also creates non-accurate pricing decisions.

Lack of common unit to standardize product or service and justifiable standard unit to measure them under different scenario is also the reason behind the lack of popularity of the barter trade system.

To buy a car in a barter system, an economics professor may need such a trading partner who is willing to have economics lectures or economic advices in exchange of a car. This type of search can be very difficult and a lot of time of the professor can be wasted. Wastage of costs can also be an issue in locating this kind of partner. Thus, an economics professor can feel difficulties while purchasing a new car in a barter system.

Economics Concept Introduction

Barter System:

In trade, a barter system refers to the exchange of good and services without the use of common currency. The party directly exchanges goods and services with other goods and services.The coincidence of need is necessary in this situation.

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Answer 5

Chapter 25, Problem 1P

To determine

To explain:

The difficulties that an economics professor might feel while purchasing a new car under a barter system.

Expert Solution & Answer

Explanation of Solution

There is a huge deficiency in the barter trade system. It creates hindrance in a proper or justified trade between the participants of the transaction. Lack of common medium of exchange like money, is one of the prominent hindrances in the barter system of trade. Apart from that, the unavailability of knowledge of the trade regarding different products or services to traders also creates non-accurate pricing decisions.

Lack of common unit to standardize product or service and justifiable standard unit to measure them under different scenario is also the reason behind the lack of popularity of the barter trade system.

To buy a car in a barter system, an economics professor may need such a trading partner who is willing to have economics lectures or economic advices in exchange of a car. This type of search can be very difficult and a lot of time of the professor can be wasted. Wastage of costs can also be an issue in locating this kind of partner. Thus, an economics professor can feel difficulties while purchasing a new car in a barter system.

Economics Concept Introduction

Barter System:

In trade, a barter system refers to the exchange of good and services without the use of common currency. The party directly exchanges goods and services with other goods and services.The coincidence of need is necessary in this situation.

Answer 6

Chapter 25, Problem 1P

To determine

To explain:

The difficulties that an economics professor might feel while purchasing a new car under a barter system.

Expert Solution & Answer

Explanation of Solution

There is a huge deficiency in the barter trade system. It creates hindrance in a proper or justified trade between the participants of the transaction. Lack of common medium of exchange like money, is one of the prominent hindrances in the barter system of trade. Apart from that, the unavailability of knowledge of the trade regarding different products or services to traders also creates non-accurate pricing decisions.

Lack of common unit to standardize product or service and justifiable standard unit to measure them under different scenario is also the reason behind the lack of popularity of the barter trade system.

To buy a car in a barter system, an economics professor may need such a trading partner who is willing to have economics lectures or economic advices in exchange of a car. This type of search can be very difficult and a lot of time of the professor can be wasted. Wastage of costs can also be an issue in locating this kind of partner. Thus, an economics professor can feel difficulties while purchasing a new car in a barter system.

Economics Concept Introduction

Barter System:

In trade, a barter system refers to the exchange of good and services without the use of common currency. The party directly exchanges goods and services with other goods and services.The coincidence of need is necessary in this situation.

Answer 7

Chapter 25, Problem 1P

To determine

To explain:

The difficulties that an economics professor might feel while purchasing a new car under a barter system.

Answer 8

Expert Solution & Answer

Explanation of Solution

There is a huge deficiency in the barter trade system. It creates hindrance in a proper or justified trade between the participants of the transaction. Lack of common medium of exchange like money, is one of the prominent hindrances in the barter system of trade. Apart from that, the unavailability of knowledge of the trade regarding different products or services to traders also creates non-accurate pricing decisions.

Lack of common unit to standardize product or service and justifiable standard unit to measure them under different scenario is also the reason behind the lack of popularity of the barter trade system.

To buy a car in a barter system, an economics professor may need such a trading partner who is willing to have economics lectures or economic advices in exchange of a car. This type of search can be very difficult and a lot of time of the professor can be wasted. Wastage of costs can also be an issue in locating this kind of partner. Thus, an economics professor can feel difficulties while purchasing a new car in a barter system.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Economics Concept Introduction

Barter System:

In trade, a barter system refers to the exchange of good and services without the use of common currency. The party directly exchanges goods and services with other goods and services.The coincidence of need is necessary in this situation.

Answer 12

Ch. 25 - Prob. 1P Ch. 25 - Prob. 2P Ch. 25 - Prob. 3P Ch. 25 - Prob. 4P Ch. 25 - Prob. 5P Ch. 25 - Prob. 6P Ch. 25 - Prob. 7P Ch. 25 - Prob. 8P Ch. 25 - Prob. 9P Ch. 25 - Prob. 10P

The difficulties that an economics professor might feel while purchasing a new car under a barter system.

To explain: The difficulties that an economics professor might feel while purchasing a new car under a barter system.

Explanation of Solution

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Chapter 25 Solutions

To explain:

The difficulties that an economics professor might feel while purchasing a new car under a barter system.