This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: All normal goods have A) income elasticities of demand greater than 1.0. B) price elasticities ... (Read 92 times)

iveyjurea

  • Hero Member
  • *****
  • Posts: 555
on: Jun 29, 2018
All normal goods have
 
  A) income elasticities of demand greater than 1.0.
  B) price elasticities of demand greater than 1.0.
  C) negative price elasticities of demand.
  D) positive income elasticities of demand.

Question 2

Dana's utility of wealth is 65 units at 3,000, 80 units at 5,000, and 95 units at 9,000. Starting from zero wealth, he must choose between options A and B. Option A gives him 5,000 for sure.
 
  Option B gives him 3,000 with probability 0.5 or 9,000 with probability 0.5. Dana will
  A) choose option A.
  B) choose option B.
  C) be indifferent between option A and option B because they have the same risk.
  D) be indifferent between option A and option B because they have the same expected utility.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

Chocorrol77

  • Sr. Member
  • ****
  • Posts: 313
Reply #1 on: Jun 29, 2018
Answer to Question 1

D

Answer to Question 2

D


iveyjurea

  • Member
  • Posts: 555
Reply 2 on: Jun 29, 2018
:D TYSM

Liddy

  • Member
  • Posts: 342
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

« previous next »
 

Did you know?

Complications of influenza include: bacterial pneumonia, ear and sinus infections, dehydration, and worsening of chronic conditions such as asthma, congestive heart failure, or diabetes.

Did you know?

Interferon was scarce and expensive until 1980, when the interferon gene was inserted into bacteria using recombinant DNA technology, allowing for mass cultivation and purification from bacterial cultures.

Did you know?

When Gabriel Fahrenheit invented the first mercury thermometer, he called "zero degrees" the lowest temperature he was able to attain with a mixture of ice and salt. For the upper point of his scale, he used 96°, which he measured as normal human body temperature (we know it to be 98.6° today because of more accurate thermometers).

Did you know?

More than 30% of American adults, and about 12% of children utilize health care approaches that were developed outside of conventional medicine.

Did you know?

The senior population grows every year. Seniors older than 65 years of age now comprise more than 13% of the total population. However, women outlive men. In the 85-and-over age group, there are only 45 men to every 100 women.

Vision. Normal vision and vision problems. Vision. Normal vision and vision problems.
Pericardial effusion: A, normal pericardial sac; B, pericardial sac with excess fluid possibly causi Pericardial effusion: A, normal pericardial sac; B, pericardial sac with excess fluid possibly causi
Density of Papillae, and Hence Taste Buds, in a Supertaster and in a Normal Taster Density of Papillae, and Hence Taste Buds, in a Supertaster and in a Normal Taster
The Gender Pay Gap Over Time: What Percentage of Men's Income Do Women Earn? The Gender Pay Gap Over Time: What Percentage of Men's Income Do Women Earn?
Action of FMRP protein in normal and fragile-X cells Action of FMRP protein in normal and fragile-X cells
Video: Protein digestion - stomach & small intestine

For a complete list of videos, visit our video library