Author Question: Last year in the United States, the price of snowboards rose by 5 percent and the price rise ... (Read 81 times)

Zulu123 · **on:** Jun 29, 2018

Last year in the United States, the price of snowboards rose by 5 percent and the price rise resulted in a 15 percent increase in the quantity supplied. This outcome is an indication that

A) the supply curve of snowboards shifted rightward.
B) the supply of snowboards is price elastic.
C) some firms entered into the snowboard industry.
D) All of the above answers are correct.

Question 2

The above figure shows how an individual evaluates a bet in which he or she has a 0.5 probability of receiving 20 and a 0.5 probability of receiving 200. The individual would be indifferent between

A) 110 with certainty or the expected value of the bet.
B) 80 with certainty or the expected value of the bet.
C) 200 with certainty or the expected value of the bet.
D) 20 with certainty or the expected value of the bet.