.) NBA superstar Giannis Antetokounmpo recently reached an agreement with the Milwaukee Bucks on a five-year...

 

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.) NBA superstar Giannis Antetokounmpo recently reached an agreement with the Milwaukee Bucks on a five-year contract extension worth $228 million dollars. This amount would be enough to finance a small medical clinic of probably around 20 doctors and 20 nurses plus equipment. Does this imply Americans, and people in Milwaukee in particular, think that basketball is more important than medical services? Support your answer with a graphical analysis. No graphs, no points. 6.) (10 points) Andy consumes only two goods, X and Y. His indifference curves have the usual shape. He prefers basket (X=3, Y=6) to basket (X=5, Y=5). Is it possible to tell whether Andy prefers basket (3,6) to (6,4)? 7.) The demand curve for Black Diamond cams (devices used to protect falls in rock climbing) is as follows: MV Q $120 $100 $80 $60 $40 $20 4 5 6 7 8 9 a.) (5 points) The current price of a "cam" is $80. Calculate the demand elasticity at this price. Is the demand elastic or inelastic at this price? b.) (10 points) Suppose that Black Diamond has a huge fire in their main manufacturing plant destroying many of the machines that produce cams. As a result, the supply of cams on the market is reduced. What happens to the total amount that people spend (i.e total expenditures) on cams? Support your answer with a graph. No graph, no points. .) NBA superstar Giannis Antetokounmpo recently reached an agreement with the Milwaukee Bucks on a five-year contract extension worth $228 million dollars. This amount would be enough to finance a small medical clinic of probably around 20 doctors and 20 nurses plus equipment. Does this imply Americans, and people in Milwaukee in particular, think that basketball is more important than medical services? Support your answer with a graphical analysis. No graphs, no points. 6.) (10 points) Andy consumes only two goods, X and Y. His indifference curves have the usual shape. He prefers basket (X=3, Y=6) to basket (X=5, Y=5). Is it possible to tell whether Andy prefers basket (3,6) to (6,4)? 7.) The demand curve for Black Diamond cams (devices used to protect falls in rock climbing) is as follows: MV Q $120 $100 $80 $60 $40 $20 4 5 6 7 8 9 a.) (5 points) The current price of a "cam" is $80. Calculate the demand elasticity at this price. Is the demand elastic or inelastic at this price? b.) (10 points) Suppose that Black Diamond has a huge fire in their main manufacturing plant destroying many of the machines that produce cams. As a result, the supply of cams on the market is reduced. What happens to the total amount that people spend (i.e total expenditures) on cams? Support your answer with a graph. No graph, no points.

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7 a To calculate the demand elasticity at the price of 80 Price P 80 Quantity demanded Q 6 Change in ... View the full answer