Buy low and sell high is advice given to people who want to make a profit by buying and selling shares of stock. Arbitrage is defined as buying a product in one market at a low price and reselling it in another market at a high price.
Therefore, when stock brokers buy and sell stocks to earn a profit they are engaging in arbitrage. Evaluate this statement; state whether it is true or false and explain your answer.
Question 2
Consider the following hypothetical scenarios:
Scenario A: You are about to purchase a pair of 7 for All Mankind jeans for 175 and a t-shirt for 45.
The sales attendant at the store tells you that the pair of jeans you wish to buy is on sale for 160 at another store, located about a 20-minute drive away.
Scenario B: You are about to purchase a pair of 7 for All Mankind jeans for 175 and a t-shirt for 45. The sales attendant at the store tells you that the t-shirt you wish to buy is on sale for 30 at another store, located about a 20-minute drive away.
Based on standard economic theory, under which scenario would you make the 20-minute trip to the other store?
A) Scenario A because the pair of jeans is a very expensive item and 15 saving is quite substantial
B) Scenario B because a 15 saving amounts to a substantial discount (about 33 percent)
C) in either scenario if I think a 15 savings is worth the 20-minute trip
D) in none of these scenarios if I think the 15 saving is not worth the 20-minute trip
E) C and D are correct answers.
Mononucleosis is caused by the Epstein–Barr virus. Symptoms of the infectious disease are swollen pa
Gurung people of Nepal
Booker T. Washington in his office at Tuskegee Institute, 1900. Washington chose a policy of accommo
Two wells are filled with the same antigen, and when they diffuse to the antibody, they make a line ...
A high-resolution model of the 50S ribosomal subunit
Collage of people showing emotions