SAPLINGPLUS ACCESS MICRO 1 TERM
4th Edition
ISBN: 9781319319038
Author: KRUGMAN
Publisher: MAC LTD
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Question
Chapter 20, Problem 10P
To determine
Risk Aversive and Risk Loving behavior and Expected Value
Concept Introduction:
Risk Aversive and Risk Loving behavior- A person with a decreasing MUy is a risk aversive who attempts to lower uncertainty by avoiding gambling, while a person with an increasing MUy is a risk loving person. A risk neutral person holds a psychology between the risk lover and risk aversive person. He is concerned only with the expected return.
Expected Value- The aggregate of the products of the dollar value associated with each outcome and its probability of occurrence is the expected value of the economic choices. It is a predictive value influencing economic decisions. This is also called the Mathematical Expectation or the EV of an economic experiment.
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If 17 Ps are needed and no on-hand inventory exists fot any of thr items, how many Cs will be needed?
Exercise 5Consider the demand and supply functions for the notebooks market.QD=10,000−100pQS=900pa. Make a table with the corresponding supply and demand schedule.b. Draw the corresponding graph.c. Is it possible to find the price and quantity of equilibrium with the graph method? d. Find the price and quantity of equilibrium by solving the system of equations.
1. Consider the market supply curve which passes through the intercept and from which the marketequilibrium data is known, this is, the price and quantity of equilibrium PE=50 and QE=2000.a. Considering those two points, find the equation of the supply. b. Draw a graph for this equation.
2. Considering the previous supply line, determine if the following demand function corresponds to themarket demand equilibrium stated above. QD=.3000-2p.
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SAPLINGPLUS ACCESS MICRO 1 TERM
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