Imagine you are a buyer in a double oral auction with a reservation value of $13 and there is a seller asking for $7. If you accept this offer, you will gain $. (Enter your answer as an integer.)
Q: Let QS1- 1000, QS2= 2000, QD2-4000, QD1-5000, P1-20 and P2-15. Calculate the production and…
A: To calculate the loss of production and consumption, we must first understand the…
Q: Refer to the above graph for a purely competitive firm in the short run. The firm would suffer…
A: A firm earns a profit when total revenue is greater than total cost. A firm incurs loss when total…
Q: According to your figure, the eventual long-run impact of the increase in aggregate demand is A.…
A: Aggregate demand curve represents quantity demanded corresponding to different price level.…
Q: Which of the following will cause the demand curve to shift?
A: Demand curve represents quantity demanded corresponding to different price level.Supply curve…
Q: A production function defines the output that can be produced A. as technology changes over time.…
A: Production function defines the relation between input and output , or we can say that it represent…
Q: The term market failure refers to a. a market that fails to allocate resources efficiently. O b. an…
A: Market failure refers to a situation in which a market fails to allocate resources efficiently. This…
Q: Keynes believed that abrupt changes in spending behavior Multiple Choice Have no effect on the…
A: Abrupt changes in spending behavior are sudden and unexpected changes in the amount of money that…
Q: In the following question you are asked to determine, other things equal, the effects of a given…
A: Market equilibrium: At the market equilibrium demand equals supply. Or at market equilibrium point…
Q: 4. Which of the following most appropriately illustrate the law of supply? a. Corporation XYZ has…
A: When all other variables are held constant, the relationship between the price of an item or service…
Q: Use the following figure showing the domestic demand and supply curves for product B in a…
A: The given graph depicts the domestic demand and domestic supply curve as S and D respectively. The…
Q: Compare and contrast the Fed's monetary policy response to the surge in desired reserves and…
A: Monetory policy is made by central monetary authority or central of a country to contain inflation,…
Q: Refer to Figure: Fiscal Policy I. Suppose that this economy is in equilibrium at E2. If there is a…
A: Keynesianism has made strides in its ability to solve economic downturns by government intervention,…
Q: The arrows in Figures A-D represent possible movements of the exchange rate (euros per U.S. dollar)…
A: An exchange rate is the rate at which one currency can be exchanged for another currency. It…
Q: A rotary engine powers a vertical takeoff and landing (VTOL) personal aircraft known as the Moller…
A: The term “future worth” refers to the concept of determining the value or worth of something at a…
Q: Suppose GDP in this country is $2,250 million. Enter the amount for investment. National Income…
A: A budget deficit takes place when expenditure exceeds its revenue at some stage in a particular…
Q: Suppose advances in computer technology and the price level will will Increase; increase Increase;…
A: If the development of information technology leads to an increase in the productivity of workers, it…
Q: Government regulations and the causes of the 2008 financial crisis: which existing regulations…
A: Deregulation refers to the removal or relaxation of government rules and restrictions in a…
Q: a) If a country produces 3 units of consumption goods, how many units of capital goods can it…
A: Consumption is the buying of goods and services available in the market to satisfy the needs of the…
Q: Saving-Investment Diagram Real Interest Rater (percen C Curve Investment Curve DE F GH Desired…
A: Net capital outflow holds relevance in the contemporary economic landscape due to its reflection of…
Q: An individual has allocated income so as to maximise total utility and has marginal utility of…
A: Marginal utility is the additional satisfaction or benefit gained from consuming one more unit of a…
Q: If the own-price elasticity is equal to -.8, then: a) A 1% change in quantity demanded gives rise to…
A: Quantity demanded is the total quantity of commodities that the customers are ready to pay different…
Q: Explain how the following shocks affect the ISLM model. Describe what happens to the curves, as well…
A: IS curve: IS curve shows different combinations of interest rates and income. Such that for each…
Q: Using the graph below, use the production possibilities curve/ frontier PP1 curve to answer the…
A: Technical efficiency refers to an attainment of maximum output at the least cost. It will be…
Q: wo firms, A and B, each currently dump 50 tonnes of chemicals into the local river. The government…
A: Total cost is the sum of all costs incurred in production of goods and services Mainly two cost is…
Q: $8 (a) Jill's Demand Jill's demand 10 Quantity 15 O A. The construction of market demand for an…
A: Public Good: Public goods are those goods which have non-rivalrous (if someone consumes that good,…
Q: The monetary policy options that can prevent a decrease in the risk premium on risky bonds from…
A: This can be described as a concept that works as a tool of the government To make sure that the…
Q: 19. If the actual level of income is 36, what would be the resulting unplanned inventory investment?…
A: Inventories are the total amount of goods kept in stock by firms to meet future demand.Inventory…
Q: ventual sale as a completely different product. The demand function for each of these markets is…
A: Total profit (Π) is obtained from the formula: Π = total revenue (TR) - total cost (TC)
Q: a crash in the value of wealth held in real estate and stock markets a population boom generation…
A: The problem you provided relates to the field of macroeconomics and, more specifically, to the…
Q: Figure 16-10 The figure is drawn for a monopolistically-competitive firm. Price 160 123.33 90 56.67…
A: Monopolistic competition is a form of imperfect competition. There are a large number of firms.…
Q: TABLE 3-1 Price of DVDs 12 22 31 $24 39 $20 $16 $12 $8 Maya 5 00 11 14 17 Seema 0 na 11 14 Rest of…
A: Individual demand: The individual demand curve represents the relationship between willingness to…
Q: To increase the money supply, the Federal Reserve could lower the required reserve ratio. conduct an…
A: The required reserve ratio is the percentage of deposits that banks are required to hold in reserve.…
Q: 3. A rough measure of the degree of economic interdependence of a nation is given by:
A: Economic interdependence refers to the mutual dependence of different countries on each other,…
Q: Which of the following statements is FALSE? Select one: a. Price elasticity of supply can never…
A: The price elasticity of supply measures how responsive the quantity supplied of a product is to…
Q: Suppose that consumer spending initially rises by $5 billion for every 1 percent rise in household…
A: Aggregate demand is the overall spending made by the consumers in an economy on a diversified goods…
Q: Price PA Pada P3 P₁ Multiple Choice O P2. Q₁ Q₂QzQ4 Quantity MC less than P₁. ATC Refer to the…
A: In perfect competition, There exists a large number of buyers and sellers. The firm will produce…
Q: 08. Which of the following could have caused a shift of the Aggregate Expenditures curve from AE1 to…
A: The correct answer is (c), an improvement in consumer confidence.Consumer spending increases when…
Q: A year-long drought that destroys most of the summer's crops would be considered: a long-run supply…
A: Demand shocks: When the demand changes unexpectedly which leads to a positive impact (positive…
Q: 2 123 56 QUANTITY Demand As you can see by the changes on the graph in this case, the in the demand…
A: The demand curve is a downward-sloping curve from left to right showing an inverse relationship…
Q: 3. Use a graph to demonstrate the circumstances that would prevail in a perfectly competitive market…
A: Perfectly competitive market refers to a type of market in which there are a large number of buyers…
Q: 9-33 Using benefit-cost ratio analysis, determine which one of the three mutually exclusive…
A: Cost-benefit analysis is a method for contrasting the expenses and advantages of an intervention,…
Q: diagram? A B C Note:- Do not provide handwritten solution. Maintain accuracy and quality in…
A: Consumer equilibrium occurs where the indifference curve tangents the budget line.
Q: The AD/AS graph illustrates an inflationary gap when the equilibrium level of real GDP is…
A: This can be defined as a concept that shows the total amount of commodities and the services…
Q: The Federal Reserve will lower short-run output by a. decreasing the money supply. b.…
A: The money supply defines the total amount of money in circulation within an economy, including…
Q: Consider each scenario independently. In each of the following cases tell me, using written and…
A: The demand curve shows an inverse relationship between price and quantity demanded.The supply curve…
Q: 1. What will happen in the market for wine if the price of cheese increases (wine and cheese are…
A: Market equilibrium: At the market equilibrium demand equals supply. Or at market equilibrium point…
Q: Compared to a price of $75, at a price of $60 demand is O relatively more elastic. O relatively more…
A: An oligopoly market consists of a few firms and a large number of buyers. Firms sell differentiated…
Q: Suppose Island Bikes, a profit-maximizing firm, is the only bike rental company in a small resort…
A: Industrial economics is the study and appraisal of business financial issues utilizing abstract…
Q: 1. Explain the concept of regional economic integration and discuss two economic reasons and two…
A: Economic integration alludes to the cycle by which various nations or areas meet up to decrease or…
Q: a)Which of the following shifts aggregate demand to the right? Group of answer choices Congress…
A: Aggregate demand (AD) is the total demand for goods and services in an economy at a given price…
Step by step
Solved in 3 steps
- Explain why a player in a sealed-bid, second-price auction would never submit a bid that exceeds his or her true value of the object being sold. (Hint: What if all players submitted bids greater than their valuations of the object?)Consider the following situation: five individuals are participating in an auction for an old bicycle used by a famous cyclist. The table below provides the bidders' valuations of the cycle. The auctioneer starts the bid at an offer price far above the bidders' values and lowers the price in increments until one of the bidders accepts the offer. Bidder Value ($) Roberto 750 Claudia 700 Mario 650 Bradley 600 Michelle 550 What is the optimal strategy of each player in this case? Who will win the auction if each bidder places his or her optimal bid? If Claudia wins the auction, how much surplus will she earn?You have three tickets to a Celtics game on a night that you are going to be out of town (so the value of unsold tickets is zero to you). There are only four possible buyers of a Celtics ticket. The table below lists the respective reservation prices of these four possible buyers: Customer Reservation Price 1 $25 2 $35 3 $50 4 $60 a) How much revenue can you generate using the English auction mechanism from the sale of the first ticket? [Bids can be made in increments of $1.00] b) How much revenue can you generate using the English auction mechanism from the sale of the second ticket? [Bids can be made in increments of $1.00] c) How much revenue can you generate using the English auction mechanism from the sale of the third ticket? [Bids can be made in increments of $1.00] d) How much total revenue can you generate using the English…
- Consider the following scenarios in the Ultimatum game, viewed from the perspective of the Recipient. Assume that the Recipient is motivated by negative reciprocity and will gain $15 of value from rejecting an offer that is strictly less than 50 percent of the total amount to be divided between the two players by the Proposer. Assume that the Proposer can only make offers in increments of $1. If the pot is $30, what is the minimum offer that the Responder will accept? What percent of the pie is this amount? The minimum offer that will be accepted is S. which represents percent of the pie. If the pot is $100, what is the minimum offer that the Responder will accept? What percent of the pie is this amount? The minimum offer that will be accepted is S, which represents percent of the pie. (Round answers to 2 decimal places as needed)If there is only one buyer and one seller meeting to exchange, then any price that they agree upon must be between the willingness to pay of the buyer and the willingness to sell of the seller.True or False10 Use the expected value information to illustrate how having more bidders in an oral auction will likely result in a higher winning bid.
- In Las Vegas, roulette is played on a wheel with 38 slots, of which 18 are black, 18 are red, and 2 are green (zero and double-zero). Your friend impulsively takes all $361 out of his pocket and bets it on black, which pays 1 for 1. This means that if the ball lands on one of the 18 black slots, he ends up with $722, and if it doesn't, he ends up with nothing. Once the croupier releases the ball, your friend panics; it turns out that the $361 he bet was literally all the money he has. While he is risk-averse - his utility function is u(x) =, where x is his roulette payoff - you are effectively risk neutral over such small stakes. a. When the ball is still spinning, what is the expected profit for the casino? b. When the ball is still spinning, what is the expected value of your friend's wealth? c. When the ball is still spinning, what is your friend's certainty equivalent (i.e., how much money would he accept with certainty to walk away from his bet). Say you propose the following…Consider the following game - one card is dealt to player 1 ( the sender) from a standard deck of playing cards. The card may either be red (heart or diamond) or black (spades or clubs). Player 1 observes her card, but player 2 (the receiver) does not - Player 1 decides to Play (P) or Not Play (N). If player 1 chooses not to play, then the game ends and the player receives -1 and player 2 receives 1. - If player 1 chooses to play, then player 2 observes this decision (but not the card) and chooses to Continue (C) or Quit (Q). If player 2 chooses Q, player 1 earns a payoff of 1 and player 2 a payoff of -1 regardless of player 1's card - If player 2 chooses continue, player 1 reveals her card. If the card is red, player 1 receives a payoff of 3 and player 2 a payoff of -3. If the card is black, player 1 receives a payoff of 2 and player 2 a payoff of -1 a. Draw the extensive form game b. Draw the Bayesian form gameDiscrete All-Pay Auction: In Section 6.1.4 we introduced a version of an all- pay auction that worked as follows: Each bidder submits a bid. The highest bidder gets the good, but all bidders pay their bids. Consider an auction in which player 1 values the item at 3 while player 2 values the item at 5. Each player can bid either 0, 1, or 2. If player i bids more than player j then i wins the good and both pay. If both players bid the same amount then a coin is tossed to determine who gets the good, but again both pay. a. Write down the game in matrix form. Which strategies survive IESDS? b. Find the Nash equilibria for this game.
- Your friend bought two tickets to see James Taylor play at the Save-On Center, but now her partner can’t make it. You knew about the concert, but you decided you’re not a big enough fan to pay $100 for a ticket. On the other hand, she would have bought tickets even if they cost $150 each. If you assume that she cannot sell the ticket anywhere else, what is the minimum price you can offer her for the ticket that she will accept? Explain your answer.Consider a V-period alternating-offer bargaining game where two players bargain over a surplus initially equal to a whole-number amount V. That is, player 1 makes an offer in period 1; if player 2 rejects this offer, player 2 makes an offer in period 2; if player 1 rejects this offer, player 1 then makes another offer in period 3; and so on. Suppose that the available surplus decays by a constant value of c = 1 each period. (For example, if the players reach an agreement in period 2, they divide a surplus of V – 1.) If in period V, no agreement is reached, then both players get 0. Suppose that the players don't discount the future. Describe the subgame perfect Nash equilibrium of this game.Suppose you have $35,000 in wealth. You have the opportunity to play a game called "Big Bet/Small Bet." In this game, you first choose whether you would like to make a big bet of $15,000 of a small bet of $5,000. You then roll a fair die. If you roll a 4, 5, or 6, you win the game and earn $15,000 for the big bet or $5,000 for the small bet. If you roll a 1, 2, or 3, you lose and lose $15,000 for the big bet and $5,000 for the small bet the game Utility U₂ U₁ BEL 0 11 LATE EE ARTE Are the Small Bet and Big Bet considered fair bets? O Big Bet is fair, but Small Bet is not. No, both are not fair. Yes, both are fair. 20 OSmall Bet is fair, but Big Bet is not. G HA 1 35 D E 1 1 1 1 1 F 1 U 50 Income (thousands of dollars)