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Give an example of behavior that cannot be explained with standard economic models, and which is therefore of interest to behavioral economists. Be sure to identify (i) which standard economic assumption is violated and (ii) how do behavioral economists explain this violation.
An individual has an income of $1000 per month with which they buy the composite good with a price of $1 and food with a price of $2/unit of food. Would the consumer prefer to get $100 in food stamps or $100 in cash? You need to justify your answer t..
As a currency appreciates:
Why is an increase in number of varieties of a good regarded as a gain from trade. Can you think of economic disadvantages associated with greater product variety.
q.rooster4u and clucks are huge fast food chains that sell chicken lunch specials. although both lunches include 2
What is the formula for measuring the price elasticity of supply? Suppose the price of apples goes up from $20 to $23 a box. In direct response, Goldsboro Farms supplies 1,300 boxes of apples instead of 1,200 boxes. Compute the coefficient of price e..
The financial writer Andrew Tobias described an incident that occurred when he was a student at the Harvard Business School
You are comparing two investment options: you can purchase a 5-year bond with 10% coupon rate from company ABC or put the purchase price of the bond into a 5 year bank CD what pays 5% interest rate. Assuming that both investments have the same risk, ..
The probability that any given unit will operate for at least (1) 39 months, (2) 48 months, (3) 60 months. (Enter your answer to 4 decimal places using probabilities shown in the above table.)
when a cold snap hits florida, the price of orange juice rises in the supermarkets throughout the country. Illustrate the supply and demand table for this scenario.
Which is the safer investment, Company A Stock, Company B Stock, or a porfolio containing half of each If you make a lucky prediction about the prices of the stocks of the two companies, will you earn more or less if you invest in that company rat..
q1. if the price elasticity of demand for razors is 0.32 the demand for razors is what?q2. analyze how the different
Futons Inc. produces futons using only two inputs – capital (wood, nails, and hammers) and labor (measured in worker hours) – with a technology characterized by the following function:q = 2ln(K + 3L)Futons Inc. spent $100 on 100 units of capital at t..
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