Which of the following would shift the demand curve for gasoline to the right?
a. a decrease in the price of gasoline
b. an increase in consumer income, assuming gasoline is a normal good
c. an increase in the price of cars, a complement for gasoline
d. a decrease in the expected future price of gasoline
b
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Electric utilities are often considered natural monopolies and are regulated
When would the price be highest: when the utility is not regulated, when it is regulated using an average cost pricing rule, or when it is regulated using a marginal cost pricing rule? When would its price be lowest?
Suppose you plan to retire in eight years, but your boss would like you to earn an online MBA in order to take on a new managerial position
The firm will continue to pay your salary while you are working through the online courses, and the new position pays an additional $15,000 per year. The online MBA tuition is $35,000 per year, and your discount rate is 5%. Should you complete the degree? A) No, the net present value of the degree is negative. B) Yes, the net present value of the degree is about $4,300 C) Yes, the net present value of the degree is about $20,000 D) We do not have enough information to answer this question.