1. Suppose there are nine sellers and nine buyers, each willing to buy or sell one unit of a good, with values {$10,$9,$8,$7,$6,$5,$4,$3,$2}. Assuming no transactions costs and a competitive market, what is the equilibrium price in this market? 2. If the government imposes a price floor at $9 (i. e., price must be $9 or higher) in the above market, how many goods will be traded?
a. Five
b. Four
c. Three
d. Two

3. Suppose there is a single market maker in this market. What is the optimal bid

Grey company holds an overdue note receivable of $800,000 plus recorded accrued interest of $64,000. the effective interest rate is 8%. as the result of a court-imposed settlement on december 31, year 3, grey agreed to the following restructuring arrangement: reduced the principal obligation to $600,000.forgave the $64,000 accrued interest.extended the maturity date to december 31, year 5.annual interest of $40,000 is to be paid to grey on december 31, year 4 and year 5. the present value of the interest and principal payments to be received by grey company discounted for two years at 8% is $585,734. grey does not elect the fair value option for reporting the debt modification. on december 31, year 3, grey would recognize a valuation allowance for impaired loans of

Sauer food company has decided to buy a new computer system with an expected life of three years. the cost is $440,000. the company can borrow $440,000 for three years at 14 percent annual interest or for one year at 12 percent annual interest. assume interest is paid in full at the end of each year. a. how much would sauer food company save in interest over the three-year life of the computer system if the one-year loan is utilized and the loan is rolled over (reborrowed) each year at the same 12 percent rate? compare this to the 14 percent three-year loan.

If springfield is operating at full employment who is working a. everyone b. about 96% of the workforce c. the entire work force d. the robots