An allocation of goods is said to be Pareto-optimal (or Pareto-efficient) if no ____ are possible.   A. Pareto-improvements   B. Market systems   C. Pareto-reductions   D. Alfredo-deductions

Assume that the image shows a demand for orange juice. Which choice would show a decrease in the price of apple juice will change demand from:A. D1 to D2.B. D2 to D1.C. D3 to D2.D. D3 to D1.

Does a firm have the riight to "create" wants and try to persuade consumers to buy goods and services they didn't know about earlier? 'What are examples of "good" and "bad" want creation? Who should decide what is good and what is bad?

Is it possible to have a Pareto efficient allocation where everyone is worse off than they are at an allocation that is not Pareto efficient? Clearly define Pareto efficiency and explain your answer.

The market for bell peppers is competitive. For bell peppers to grow properly they need substantial rainfall. A very dry winter in California did not produce enough rain to grow bell peppers in California, one of the major bell pepper growing regions of the world. In the graph below, click on the equilibrium point that illustrates the effect of insufficient rainfall on the market for bell peppers. P 0 D" S $

SECTION A Answer All Questions 1. Which of the following questions is a type that tools of econometrics are meant to answer? A. If goods A and B are substitutes and the price of good A increases by KSH 10, by how much will the quantity demanded of good B change by? B. If goods A and B are substitutes and the price of good A increases, how will this affect the demand for good B? C. If an income increase causes the sales of good A to fall, everything else held constant, what type of good is good A? D. Everything else the same, would the price of good A be higher in a competitive industry or a monopolistic industry? 2. Consider the model Qª = ƒ (P, P³,Pº, INC) where Qªis quantity demanded of a bar soap per month, P is the price per bar of soap, Ps is the price of substitutes, P is the price of complements, and INC is monthly income. This equation represents A. a non-linear model B. an economic model C. an econometric model D. an interval forecast

Consider the market for new houses.  If the price of lumber increases significantly, explain the effect of the change on the market equilibrium for new houses.  Use the 4 step process in your answer. View keyboard shortcuts

BN7.3 (a) (b) Survivor 1 & Survivor 2 are lost in the Woods. The Quantities of Good A & Good B are in Fixed Supply. The Edgeworth Box below shows all the possible allocations of these 2 Goods & can be used to answer the following Questions: For each statement below, note whether the Statement is True or False & Why? Good B Survivor 2 B Good A Survivor 1 a) If Survivor 2's Quantity of Good A increases, Survivor I's Quantity of Good A must decrease. True or False? b) Survivor I's Utility decreases as you move towards the bottom left corner of the Edgewood Box. True or False?