Foundations of Economics (8th Edition)
8th Edition
ISBN: 9780134486819
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
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Question
Chapter 6, Problem 1SPPA
To determine
To explain:
The method used in allocation of table resources in the given three restaurants.
Expert Solution & Answer
Answer to Problem 1SPPA
Company M is a place where usually anyone goes. Art Restaurant will attract middle-class income earners and upper-middle class income earners and LB in NY City will attract the upper-middle class income earners and high-income earners.
Explanation of Solution
Company M does not accept reservations as it is restaurant where one can sit and have a meal. All types of people visit Company M since its menu prices are not costly. Thus, there is no allocation of table and most people who visit Company M are willing to wait till a seat is vacant, hence reservation is not accepted.
Art restaurant is usually a target for middle-class income earners and upper-middle class income earners and people. The people who want to visit this restaurant prefer to either wait for a vacant seat or they reserve in prior in order to eliminate waiting.
LB in NY City focuses more on the upper-middle class income earners and high-income earners and usually these types of people visit this restaurant. Hence, for these elite people to eliminate waiting and to maintain the restaurant's class, reservation is vital.
Economics Concept Introduction
Resource allocation:
Allocation of resources refers to distribution of resources amongst different uses. Resource allocation awakened as a problem of the society as there is only limited supply and human wants are unlimited.
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Florin and Guilder are two countries separated by a narrow sea. They use currencies called, respectively, the Flop and the Gulp.
Suppose the nominal exchange rate is 20 Flops per Gulp.
A Guilderian trader buys a 120 Flop barrel of Florish pickles by exchanging 6 Gulps, and a Florish trader buys a 4 Gulp crate of Guilderian apples by exchanging 80 Flops.
Then the Gulp depreciates to 10 Flops per Gulp.
Instructions: Enter your answers as whole numbers.
How much must the Guilderian pay for the same 120 Flop barrel of pickles?
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Chapter 6 Solutions
Foundations of Economics (8th Edition)
Ch. 6 - Prob. 1SPPACh. 6 - Prob. 2SPPACh. 6 - Prob. 3SPPACh. 6 - Prob. 4SPPACh. 6 - Prob. 5SPPACh. 6 - Prob. 6SPPACh. 6 - Prob. 7SPPACh. 6 - Prob. 8SPPACh. 6 - Prob. 9SPPACh. 6 - Prob. 10SPPA
Ch. 6 - Prob. 11SPPACh. 6 - Prob. 12SPPACh. 6 - Prob. 1IAPACh. 6 - Prob. 2IAPACh. 6 - Prob. 3IAPACh. 6 - Prob. 4IAPACh. 6 - Prob. 5IAPACh. 6 - Prob. 6IAPACh. 6 - Prob. 7IAPACh. 6 - Prob. 8IAPACh. 6 - Prob. 9IAPACh. 6 - Prob. 1MCQCh. 6 - Prob. 2MCQCh. 6 - Prob. 3MCQCh. 6 - Prob. 4MCQCh. 6 - Prob. 5MCQCh. 6 - Prob. 6MCQCh. 6 - Prob. 7MCQ
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