Assignment
I. Supposed that you represent the shareholder board of Apple Inc. and decide to elicit high CEO effort to help the company:
1. What will be your incentive contract plan (e.g. bonus, stock option...etc.)?
2. Given your answer in a, if Apple does not perform as expected (say iphone X is not popular), what criticism of the incentive contract plan can you see?
II. Apply demand and supply analysis to answer the following questions related to the U.S. real estate market:
1. What will be the impact on residential real estate market if the Fed raises the interest rate again in this year? Please state the leftward/rightward shift on either demand/supply curve and comment on the equilibrium price change.
2. If a price ceiling on real estate agency commission is limited at 1% only, what will be the impact on new market equilibrium price and quantity of residential real estate market? ? Please state the leftward/rightward shift on either demand/supply curve and comment on the equilibrium price change.