Consider the following exchange economy: u (x1, x2) = min{2x1, x2} u³ (x, x2) = min{x, 2x} = (2, 2) B = (2, 2) Let P₁/p2 denote the relative price. Suppose = 1. = (a) Show that both markets clear at this relative price by computing the optimal consumption plan for each consumer and showing that these plans are feasible. [25 marks] (b) What is the associated WEA? How many units are bought and sold on each market? [10 marks] (c) Illustrate this equilibrium in an Edgeworth Box diagram. Your diagram should include the WEA, the budget line, and each con- sumer's indifference curve through the WEA. [15 marks]

The supply and demand equations of a good are given by the following formulas P=2Qs +48 P= -6QD+ 160 Find the equilibrium price and quantity. The equilibrium quantity is. (Type an integer or a decimal.) ***

Could you use formulas in order to get those answers, like the images I have attached to this follow-up questions?

Translate the following monetary payoffs into utilities for a decision maker whose utility function is described by an exponential function with R = 250: –$200, –$100, $0, $100, $200, $300, $400, $500.

Construct the payoff piecewise function from a bull spread when puts with strike prices K1 and K2, with K2 > K1, are used.

12) Suppose that demand is given by the equation: P = 10 - 0.2QD and supply is given by the equation: P = 2 + 0.2Qs. Find the equilibrium price and quantity.

Which of the following measures how responsive demand will be to a change in price?    Question 5 options:   A)  Pricing adjustment    B)  Demand extension    C)  Price elasticity   D)  Demand curve

5. (Replicating strategy for pricing) To price a derivative, we can use risk-neutral pricing. As an alternative yet equivalent method, we can construct price the derivative using replicating strategies. Consider a 1-period binomial model, where we have three nodes No.0, N1.0, N1.1. We have a cash account with fixed interest rate r = 0.01 - that is, if we have at No.0 cash account with D dollars, we expect (1+ r)D at either N1.0 or N1.1. We also have a stock with price S0.0 10 at No,0, S1,0 = 8 at N1,0 and S1,1 = 15 at N1,1. Now consider an European call option at time t = 1 with strike K = 12. Can you price the option at No.0 using a replicating strategy, and what is the price? Please submit your answer rounded to only one decimal digit - for example if your answer is 1.28, then submit 1.3. If your answer is 1.12, submit 1.1.

When comparing two mutually exclusive alternatives by the ROR method, if the rate of return on the alternative with the higher first cost is less than that of the lower first-cost alternative: (a) The rate of return on the increment between the two is greater than the rate of return for the lower first-cost alternative (b) The rate of return on the increment is less than the rate of return for the lower first-cost alternative (c) The higher first-cost alternative may be the better of the two alternatives (d) The lower first-cost alternative should be selected

The following payoff table shows profit for a decision analysis problem with two decision alternatives and three states of nature:     State of Nature Decision Alternative S1 S2 S3 d1 200 150 150 d2 250 150 100   The probabilities for the states of nature are P(s1) = 0.55, P(s2) = 0.25, and P(s3) = 0.2.   (a) What is the optimal decision strategy if perfect information were available?   S1 :   S2 :   S3 :       (b) What is the expected value for the decision strategy developed in part (a)? If required, round your answer to one decimal place.         (c) Using the expected value approach, what is the recommended decision without perfect information?           What is its expected value? If required, round your answer to one decimal place.         (d) What is the expected value of perfect information? If required, round your answer to one decimal place.