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How many sundaes does she buy? If the price of a sundae doubles to $8 and other things remain the same, how many sundaes will she buy?
Why Would Ben ever want to buy more than one carton of orange juice a day or no orange juice? Explain your answer.
Draw a graph of Amy's budget line. Can Amy buy 7 cans of soda and 2 cups of coffee a week? Can she buy 7 cups of coffee and 2 cans of soda a week?
Tony is maximizing total utility. If Tony's marginal utility from water is 0.5 unit per gallon, what is his marginal utility from a DVD rental?
List the combinations of burgers and magazines that Jerry can afford. What is the relative price of a magazine? Explain your answer.
You open a 5-year CD for $1,000 that pays 2% interest, compounded annually. What is the value of that CD at the end of the 5 years?
If your receive $500 in simple interest on a loan that you made for $10,000 for 5 years, what was the interest rate you charged?
What is the total amount of interest collected from a $5,000 loan after three years with a simple interest rate of 6%?
If the insurance company were selling life insurance separately to each group, what would be the actuarially fair premium for each group?
How would you expect this improved information to affect the quantity of high-quality emeralds sold on the website?
To what sorts of customers would an insurance company offer a policy with a high copay? What about a high premium with a lower copay?
How do you think the problem of moral hazard might have affected the safety of sports such as football and boxing when safety regulations started requiring.
As you think about hiring someone for a job, what are some mechanisms you might use to overcome the problem of imperfect information?
If the government offers vouchers to students and values them so that the efficient number of students will enroll, what is the value of the voucher?
If the government subsidizes colleges so that the efficient number of students will enroll, what is the cost to taxpayers?
With no government involvement in college education, how many students enroll and what is the tuition? Calculate the deadweight loss created.
Explain how Seattle's 20-cents charge will change the use of plastic bags. Explain why a complete ban on plastic bags would be inefficient.
what is the case for increasing the gas tax in the United States to European level and what is case against an increase in the gas tax to the European level?
Why would Toronto streets become less congested? If the new charges cut commute times, would the Toronto road system be more efficient?
Some car dealers offer used cars for sale with warranties and some offer them without warranties. Describe the equilibrium in the market for used cars.
Describe the asymmetric information problem in the market for health-care services and explain how the problem is dealt with.
Pam is low-risk careful driver and Fran is high-risk aggressive driver. What might an auto-insurance company do to get Pam and Fran to reveal their driver type?
Describe the market in terms of its anticipated growth, revenue opportunities, past performance, etc.
Explain the effect of the eathquake on the price of a good used car and the price of a lemon.