Microeconomics, Student Value Edition (2nd Edition)
2nd Edition
ISBN: 9780134461786
Author: Daron Acemoglu, David Laibson, John List
Publisher: PEARSON
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Question
Chapter 1, Problem 5P
(a)
To determine
All agents are not optimized in the given scenario.
(b)
To determine
Results of being in equilibrium.
(c)
To determine
Shopper with most informative behavior.
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Students have asked these similar questions
How would you choose between a diamond and a bottle of water in the different scenarios described in the video? You MUST explain your answer using economic concepts you have learned in the course so far.
What did you or your family do during the severe shortage of toilet paper at the beginning of the pandemic in 2020? How would you value a bag of 12 toilet paper compared to a diamond back then? Would it be different compared to during normal circumstances? Explain your answer.
Table 7-8
Seller
Cost
(Dollars)
Evan 50
Selena 100
Angie 150
Kris 200
Refer to Table 7-8. If the sellers bid against each other for the right to sell the good to a consumer, then the good will sell for
a. $100 or slightly less.
b. $150 or slightly less.
c. $50 or slightly more.
d. $200 or slightly more.
What type of economists believe that markets naturally self-correct, and will reward good strategies and punish bad ones?
Chapter 1 Solutions
Microeconomics, Student Value Edition (2nd Edition)
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Similar questions
- Answer the given question with a proper explanation and step-by-step solution. Which of the following choices correctly illustrates how changes in opportunity costs affect supply? A) A farmer produces corn and wheat. The price of wheat rises, so he shifts his resources toward wheat and the supply of wheat rises. B) A fisherman fishes for lobsters and oysters. The price of lobsters rises, so he decides to spend more of his time fishing for oysters because he can make the same amount of money with fewer lobsters. C) A textbook for economics becomes cheaper, so more students opt to buy that particular textbook. D) Milk and cereal are complementary goods, so when the price of cereal falls, the quantity supplied of milk rises.arrow_forwardPlease provide an explanation as to why each choices is either correct or wrong.arrow_forwardBy using consumer choice theory, explain why diamonds, which are not necessary to sustain life, are expensive, whereas water, which is necessary for life, is not.arrow_forward
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