Suppose Brian is willing to pay a total of $90,000 for an electric vehicle. True or False: Keeping his maximum willingness to pay for an electric vehicle in mind, Brian will buy the electric vehicle because it would be worth more to him than its market price of $135,000. True False

A gambling game requires people to place bets on either "Big" or "Small" or "Seven" designating the result of two dice throws. Big represents a sum of 8 to 12, while small is from 2 to 6. The special space "seven" is reserved for, of course, 7. Betting on "Big" provides a 1:1 betting win ratio amount. (Ex: Any bet amount of X, will net the winner another amount X, and still get his bet amount X back. ) Betting on "Small" also provides a 1:1 betting win ratio. The space "Seven" gives a 1:5 win ratio amount: Betting 100 money units on "Seven" and having a result of 7 nets the bettor 500 money units, and still have his 100 money units returned to him. If your bet does not appear, then the player loses his/her bet. What is the net Expected value of the strategy of betting 100 money units on "Big" ? Give your answer to two decimal places.

Jia is considering whether to go out to dinner at a restaurant with her friend. The meal is expected to cost $40, Jia typically leaves a 20% tip, and an Uber will cost $5 each way. Jia values the restaurant meal at $25. Jia enjoys her friend s company and is willing to pay $30 just to spend an evening with her.

Alice and Bob are each confronted with the choice between: A. Purchasing a set of headphones at the bookstore on campus for $25. OR B. Purchasing an identical set of headphones downtown for $10. If Alice chooses option A, but Bob chooses option B, which of the following must be true if Alice and Bob are both rational?  - Alice and Bob face the same inconvenience associated with going downtown - for Bob, the inconvenience associated with traveling downtown was less than $15 - for Alice, the inconvenience associated with traveling downtown was greater than $10 -  for Bob, the inconvenience associated with traveling downtown was greater than $15

Please provide full derivation, and 5. Casper consumes cocoa and cheese. Cocoa is sold in an unusual way. There is only one supplier, and the more cocoa you buy from him, the higher the price you have to pay per unit. In fact y units of cocoa will cost Casper y2 dollars. Cheese is sold in the usual way at a price of 2 dollars per unit. Casper's income is 20 dollars and his utility function is U(x, y)=x+2y, where x is his consumption of cheese and y is his consumption of cocoa. a. Sketch Casper's budget set and shade it in. b Sketch some of his indifference curves and label the point that he chooses. c. Calculate the amount of cheese and the amount of cocoa that Casper demands at these prices and this income.

True or false: keeping his maximum willingness to pay for a yacht in mind, Tim will buy the yacht because it will be worth more to him than its market price of $350,000

4. Two individuals, Amir and Budi, consume two goods, clothes (X) and shoes (Y). The utility functions for the two individuals are given as: Utility function of Amir, UA = 15X0.25Y0.75Utility function of Budi, UB = 25X0.5Y0.5 The current price for clothes (Px) is Rp 100,000 and the current price for shoes (PY) is Rp 150,000 a. Determine marginal rate of substitution (MRSXY)between clothes (X) and shoes (Y) for Amir and Budi! Please explain. b. Amir is currently consuming 5 units of clothes (X) and 10 units of shoes (Y), whereas Budi is consuming 12 units of clothes (X) and 8 units of shoes (Y). At this current consumption, have Amir and Budi reached the efficient allocation of clothes and shoes? If they have, explain why. If they have not, calculate the optimal allocation and explain. c. Considering the relative price between of clothes and shoes, at the current consumption, have Amir and Budi reached exchange equilibrium? Please explain d. Use the Edgeworth Box to illustrate the…

Juanita is deciding whether to buy a skirt that she wants, as well as where to buy it. Three stores carry the same skirt, but it is more convenient for Juanita to get to some stores than others. For example, she can go to her local store, located 15 minutes away from where she works, and pay a marked-up price of $102 for the skirt:        Store Travel Time Each Way Price of a Skirt (Minutes) (Dollars per skirt) Local Department Store 15 102 Across Town 30 85 Neighboring City 60 76   Juanita makes $42 an hour at work. She has to take time off work to purchase her skirt, so each hour away from work costs her $42 in lost income. Assume that returning to work takes Juanita the same amount of time as getting to a store and that it takes her 30 minutes to shop. As you answer the following questions, ignore the cost of gasoline and depreciation of her car when traveling.

Case No. 1 Emma likes to call her friend regularly during the month, but he lives abroad. A call costs him $5/minute. The psychological benefit (measured in dollars) of the first 100 minutes of call is $10/minute, that of the next 100 minutes, $5/minute, that of the next 100 minutes, $2.5/minute and finally, that of the next 100 minutes, also $2.5/minute. A) If Emma calls her friend 100 minutes a month, does she make a net gain? B) What is the number of call minutes per month that maximizes Emma's satisfaction? C) If we use Emma's monetary measure of satisfaction, what is the amount of her satisfaction? D) What should be the price per minute of a call for Emma to be at the maximum satisfaction by choosing to call 400 minutes per month?

Consider the golfing question from above. Suppose that Ken values golfing for the afternoon at $65. That is, he puts a price on his happiness from golfing for the afternoon at $65. Should he go golfing? Why or why not? Yes, he should go golfing because his enjoyment ($65) is greater than the $30 price. No, he should not go golfing because the fees ($30) are greater than his lost income. Yes, he should go golfing because his enjoyment ($65) is greater than his lost income from not working ($60). No, he should not go golfing because his enjoyment ($65) is less than the cost ($90). Yes, he should go golfing. You should always go golfing when you get the chance!