Refer to Figure 9.1. If the market is in equilibrium, total ...

[lracut11]

Refer to Figure 9.1. If the market is in equilibrium, total consumer and producer surplus is
 
  A) 0.
  B) 100.
  C) 800.
  D) 1200.
  E) 2000.

Question 2

Assume that two investment opportunities have identical expected values of 100,000. Investment A has a variance of 25,000, while investment B's variance is 10,000.
 
  We would expect most investors (who dislike risk) to prefer investment opportunity A) A because it has less risk.
  B) A because it provides higher potential earnings.
  C) B because it has less risk.
  D) B because of its higher potential earnings.

[Mholman93]

Answer to Question 1

D

Answer to Question 2

C

[lracut11]

Gracias!

[kusterl]

TYSM