Yesterday you were unexpectedly given a free ticket to a Dave Matthews concert scheduled for April 1. The market price of this ticket is $75, but the most you could sell it for is only $50. Today you discover that Ani DiFranco will be giving a concert that same evening. Tickets for the Ani DiFranco con-cert are still available at $75. Had you known before receiving your Dave Mat-thews ticket yesterday that Ani DiFranco would be coming; you definitely would have bought a ticket to see her, not Dave Matthews. True or false: From what we are told of your preferences, it follows that if you are a rational utility maximizer, you should attend the Ani DiFranco concert. Explain.
Answer to relevant QuestionsMr. Smith recently faced a choice between being (a) an economics professor, which pays $60,000/ yr, or (b) a safari leader, which pays $50,000/ yr. After careful deliberation, Smith took the safari job, but it was a close ...What would the supply curve look like for a good that is not scarce? Assuming the good is useful, what would its demand curve look like? Explain why a positive price for a commodity implies that it is scarce.Using diagrams show what changes in price and quantity would be expected in the following markets under the scenarios given:a. Crude oil: As petroleum reserves decrease, it becomes more difficult to find and recover crude ...In the market for titanium described in Problem 1 (with no tax), suppose that a price floor of $4/oz results in sales of only 2 tons/yr (with no tax). Describe a transaction that will make some buyers and sellers better off ...Explain in your own words how the slope of an indifference curve provides information about how much a consumer likes one good relative to another.
Post your question