What situations could make the students behavior rational

Assignment Help Business Economics
Reference no: EM131253112

An economics professor went out to dinner one night and observed one of her students drinking heavily. The next day was a final exam. When the professor's husband found out the student was in her class, he said the student's behavior was irrational. The professor disagreed. Under what condition is behavior irrational according to the properties of consumer behavior discussed in the chapter? What situations could make the student's behavior rational?

Reference no: EM131253112

Questions Cloud

Suppose demand for beer is characterized by elasticities : Suppose the demand for beer is characterized by the following elasticities: • Own price elasticity = -2.5 • Cross-price elasticity with soda = +3 • Income elasticity = +2 Based on the given elasticities, answer the following. Explain your answers. Wh..
What atm owners can charge non-account holders : You are an aide for the Senate Banking Committee Chairman. He comes to you with a bill that proposes setting limits on what ATM owners can charge non-account holders, over and above what banks charge their own customers.  If this legislation were ena..
How is touch dna detected preserved and collected : What is Touch DNA? How is Touch DNA detected, preserved, and collected? What is AFLP analysis? What is RFLP analysis? Why are these effective methods for DNA typing?
Calculate the price elasticity of demand for dvd players : The demand function for DVD players has been estimated to be QPlayer = 134 - 1.07PDVD + 46Pm - 2.1PDVD - 5M, where QPlayer is the quantity of DVD players, PDVD is the price of a videocassette, Pm is the price of a movie, PPlayer is the price of a DVD..
What situations could make the students behavior rational : An economics professor went out to dinner one night and observed one of her students drinking heavily. The next day was a final exam. When the professor's husband found out the student was in her class, he said the student's behavior was irrational. ..
The long-run average cost curve for individual bank : There are over 5,000 banks in the United States—more than 10 times more per person than in other industrialized countries. A recent study suggests that the long-run average cost curve for an individual bank is relatively flat. If Congress took steps ..
Health care usage due to better health insurance : In general, The problem with increase in health care usage due to better health insurance is: There is no significant improvement in health status if the person is sick. there is no significant improvement in health status if the person is not sick.
What is the market equilibrium price of rice : The US market of rice is described by the following domestic supply and demand equations: QdUS = 200 – 2 P , QsUS = -100 + 3 P where QdUS and QsUS represent the quantities demanded and supplied (in millions of tons) and P is the price per ton of rice..
Market price be in order to induce five sellers : In the market for used cars we have 10 sellers, willing to sell at the prices of $1000, $2000, $3000, $4000, $5000, $6000, $7000, $8000, $9000, $10000. What could the market price be in order to induce five sellers to offer their cars for sale?

Reviews

Write a Review

Business Economics Questions & Answers

  Coordinate fiscal policies and increase government spending

Following the collapse of systemically important banks in 2008, were the G-20 group of countries right in early 2009 to coordinate their fiscal policies and increase government spending? How would you distinguish the effect of such a policy on (i) co..

  What hours of operation the two motor costs are the same

There are two electric motors that can provide 100 hp. Alpha motor can be purchased at $1,400 and has an efficiency of 80%, an estimated life of 10 years, and estimated maintenance costs of $50/year. Beta Motor will cost $1,000 and has an efficiency ..

  What is the maximum amount of good

What is the maximum amount of good Y that can be purchased if X and Y are the only two goods available for purchase and PX = $10, PY = $15, X = 30, and M = 600? (Note: X is the quantity of good X purchased and M is Income)

  Why monetary policy conducted independently in the us

Why monetary policy conducted independently in the United States and is the intended effect always achieved or why not.

  What is indicator status of the private nonresidential fixed

What is the indicator status of the Private Nonresidential Fixed Investment? Explain. What is the indicator status of Business Permits and Housing Starts? Explain.

  Which state will have higher increases in income in long run

The median household income in Louisiana is approximately $52,000 per year, while the median household income in Massachusetts is about $79,000. From the perspective of trying to maximize your income per capita, which state will have higher increases..

  What would the annualized standard return be

Suppose that, over a 564 day period, Mike Inc.'s stock price experienced (negative) Log Returns of -14%. Convert the Log Return into a Standard Return. What would the annualized Standard Return be?

  Competitive labour market with perfect information

"Explain why unemployment is always equal to zero in a competitive labour market with perfect information. provide two economic mechanisms to explain why we observe positive unemployment in the world when there is imperfect information"

  Forecasting models can be divided into three groups

Forecasting models can be divided into three groups

  Explain difference between inferior goods and normal goods

Explain the theory that education acts as a signaling device' How does this contrast to the theory of education as an investment in human capital? Explain the difference between inferior goods and normal goods' As a developing economy experiences inc..

  Increases the money supply growth rate

For a given level of inflation expectations, if the central bank increases the money supply growth rate, then in the short run

  Income elasticity and cross-price elasticity of demand

The management of the Mini Mill Steel Company estimated the following elasticity for a special type of steel it produces: Ep=-2, Ei=1, and Exy=1.5, where X refers to steel and Y to aluminium. These are, respectively, the own-price elasticity, income ..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd