Mr. marlin, an industrial engineer is considering the purchase of a copy machine for his consulting office. the copy machine will cost $1,500 and have a resale value of $400 at the end of its 5-year-life. having the machine in the office will reduce copy costs by $1,000 a year. copy machine maintenance will be $500 for the first year and will increase by $100 each year. determine if it is worth buying at an interest rate of 5%?

the answer is "b.the increased supply will create a surplus. "

the essential thought behind price controls is straightforward - utilize the power of law to modify the equilibrium of a market. for instance, the legislature may choose that the steel business needs to survive, and in this way pass a law to set a value floor on steel. this implies all steel sold must offer at or over the floor value, which must be set over the equilibrium cost for it to have any impact. the switch could likewise happen - the administration can choose that steel is excessively costly and set a value roof underneath its equilibrium value, with the goal that all steel must be sold at or beneath that ceiling.

consumer credit. an advantage is that it allows consumers to afford expensive goods and services now, increasing their standard of living. however, a disadvantage is that it creates a trap for debt, if people do not have self control, they may see themselves filing personal bankruptcy.