What will be your incentive contract plan
- Supposed that you represent the shareholder board of Apple Inc. and decide to elicit high CEO effort to help the company:
- What will be your incentive contract plan (e.g. bonus, stock option…etc.)?
- 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?
2. Please apply demand and supply analysis to answer the following questions related to the U.S. real estate market:
- 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.
- 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.
Please answer all of the two questions by one paragraph for each (sub) question.