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Author Question: Under the kinked demand model, suppose the firm's demand curve shifts rightward but the price at ... (Read 58 times)

chandani

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Under the kinked demand model, suppose the firm's demand curve shifts rightward but the price at which the kink occurs remains the same. In this case, the firm:
 
  A) does not change its output.
  B) increases output.
  C) decreases output.
  D) We do not have enough information to answer this question.

Question 2

Suppose your instructor gave hats with your school's logo to half of your economics classmates. She then asked these students to value the hats, and the average response was 9 per hat.
 
  Under the endowment effect, we should expect that the average value assigned by the economics students who did NOT receive the hats to be: A) higher.
  B) lower.
  C) the same.
  D) We cannot answer this question without knowing more about the risk preferences of the students.



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katieost

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Answer to Question 1

B

Answer to Question 2

B




chandani

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Reply 2 on: Jul 1, 2018
:D TYSM


alexanderhamilton

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Reply 3 on: Yesterday
Wow, this really help

 

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