This year, on advice from your sister, you bought tobacco company ...

[moongchi]

This year, on advice from your sister, you bought tobacco company stock at 50/share. During the year, you collected an 8 dividend, but due to the company's losses in medical lawsuits its stock fell to 40/share.
 
  At this point, you sell, realizing a A) dividend yield of -16 and a capital loss of 20.
  B) dividend yield of 16 and a capital loss of 20.
  C) dividend loss 10.
  D) capital loss of 10.
  E) total loss of 20.

Question 2

Suppose the income-consumption curve for goods X and Y is upward sloping. If the price of good Y increases and the income-consumption curve rotates in clockwise fashion, then we know that:
 
  A) X and Y are complements.
  B) X and Y are both inferior goods.
  C) X and Y are substitutes .
  D) Y is an inferior good.

[brittiany.barnes]

Answer to Question 1

B

Answer to Question 2

C

[moongchi]

Thank you

[brittiany.barnes]

Happy to help you