This topic contains a solution. Click here to go to the answer

Author Question: As a consumer you believe yourself to act rationally, optimally and self-interestedly. You like ice ... (Read 45 times)

Hungry!

  • Hero Member
  • *****
  • Posts: 1,071
As a consumer you believe yourself to act rationally, optimally and self-interestedly. You like ice cream and value a pint at 7 . Usually you buy a pint each week at 4 . This week however, the price jumped to 5 a pint. What would you do?
 a. buy the ice cream since the price is still below your maximum willingness to pay
 b. buy the ice cream since even at the new price it gives you a positive amount of consumer surplus
  c. not buy the ice-cream since the price is now higher
 d. both A&B

Question 2

What would the Nash equilibrium be in this game?
 a. Neither of the players would stop
  b. Both of the players would stop
 c. Player A stops
 d. Player B stops



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

lin77x

  • Sr. Member
  • ****
  • Posts: 326
Answer to Question 1

d

Answer to Question 2

b




Hungry!

  • Member
  • Posts: 1,071
Reply 2 on: Jul 1, 2018
Great answer, keep it coming :)


chjcharjto14

  • Member
  • Posts: 342
Reply 3 on: Yesterday
Wow, this really help

 

Did you know?

Congestive heart failure is a serious disorder that carries a reduced life expectancy. Heart failure is usually a chronic illness, and it may worsen with infection or other physical stressors.

Did you know?

Parkinson's disease is both chronic and progressive. This means that it persists over a long period of time and that its symptoms grow worse over time.

Did you know?

After a vasectomy, it takes about 12 ejaculations to clear out sperm that were already beyond the blocked area.

Did you know?

Patients who cannot swallow may receive nutrition via a parenteral route—usually, a catheter is inserted through the chest into a large vein going into the heart.

Did you know?

Russia has the highest death rate from cardiovascular disease followed by the Ukraine, Romania, Hungary, and Poland.

For a complete list of videos, visit our video library