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corie corie
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7 years ago
David Adams purchased an art collection for $100,000 five years ago.  He recently learned that art collections similar to his have been growing in value at an annual rate of 12% per year.

a.   Determine the value of David's art collection during each of the past five years.
b.   David has access to an economic consulting model that forecasts the supply and demand curves for loanable funds to be:
   LD = 18,000,000 - 100,000,000R
   LS = -4,000,000 + 120,000,000R.    
The consultant believes that the supply and demand curves will remain fixed over the next two years.  Assuming that David's only objective is wealth maximization, should David sell his art collection?  Explain your answer in detail. (Assume that the growth rate of the art collection remains constant.)
Textbook 
Microeconomics

Microeconomics


Edition: 8th
Author:
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Bart_argBart_arg
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7 years ago
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corie Author
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7 years ago
This calls for a celebration Person Raising Both Hands in Celebration
noodlelicker
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Yesterday
You make an excellent tutor!
yen
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2 hours ago
Good timing, thanks!
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