Which of the following represents an arbitrage transaction? a. ...

[crazycityslicker]

Which of the following represents an arbitrage transaction?
 a. Traders buy silks where they are abundant and cheap, and haul them along a trail to another place where they would be quite scarce and valued.
  b. A trader buys a block of government bonds in one market where it is temporarily priced below where it can be immediately resold in a different market.
  c. Someone buys a block of Final Four tickets and scalp them at the game.
  d. A senior citizen buys a block of theater tickets at a senior discount and scalps them to teenagers behind the theater.
  e. All of the above are example of arbitrage.

Question 2

Assume the price of Advil increases. As a result, you decrease the quantity of Advil purchased each month and purchase more Tylenol. This is an example of the:
 a. income effect.
  b. utility effect.
  c. consumption effect.
  d. substitution effect.

[mcabuhat]

Answer to Question 1

e

Answer to Question 2

d