Question
Crusoe begins with an endowment A. Point R is the
consumption combination he would choose at real interest rate r and point R´ is the consumption combination he would choose at real interest rate r´. Which of the following statements is true?Solution
Crusoe's wealth has decreased because of the change in the real interest rate. Because Crusoe's endowment and preferences are such that he is a borrower, the increase in the interest rate hurts him. Note the MRS = 1+r at point R.
A dishonest merchant sells goods at a 12.5% loss on the cost price, but uses 28 g weight instead of 36 g. What is his percentage profit or loss?
A businessman sold 2/5 of his stock at a gain of 25% and the remaining at a gain of 20%. The overall percentage of gain is
...A shopkeeper marked an article 50% above its cost price and made a profit of Rs. 200 when he sold the article after giving a discount of 25%. Find the p...
P purchased two items, a Table fan and a Ceiling fan, at the same cost price. She applied markups of 35% and 52% on the Table fan and Ceiling fan, respe...
After allowing a 10% discount on the marked price of an article, a dealer makes a profit of 5%. What is the marked price, if the cost price of the artic...
If a commission of 20% is given on the marked price of a work, the publisher gains 40%. If the commission increased to 24%, then find the gain percent?
A shopkeeper sells an article for Rs 78 and earns twice the profit that he would have earned on selling this article for Rs 50. Find the C.P of t...
- An appliance has a listed price of Rs. 980. It is sold after giving two back-to-back discounts of 10% and 30%. Calculate the selling price.
A shopkeeper sells an article for â‚ą18,500 at a loss of 20%. What was the cost price of the article?
Marked price of an article is Rs.260 more than its cost price. If profit earned is equal to the discount given then find the profit earned?
