Anna's Antiques expects to get three bidders for the unique china teacup it sells. Each of the bidders can either have a high-value of $100 or a low-value of $70 with equal probability. If three bidders show up at the auction and all of them are high-value bidders, what would the winning bid be?
a. Just above $100
b. $100
c. Just above $70
d. $70
b
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Refer to the scenario above. If Molly wins the auction by using her optimal bidding strategy, she will earn a surplus of ________
A) $0 B) $50 C) $14 D) $25
If the Fed conducts an open market purchase of bonds, which of the following will happen?
a. The interest rate will decrease, the aggregate expenditure line will shift upward, and the aggregate demand curve will shift leftward. b. The interest rate will increase, the aggregate expenditure line will shift upward, and the aggregate demand curve will shift rightward. c. The interest rate will decrease, the aggregate expenditure line will shift upward, and the aggregate demand curve will shift rightward. d. The interest rate will decrease, the aggregate expenditure line will shift downward, and the aggregate demand curve will shift rightward. e. The interest rate will increase, the aggregate expenditure line will shift downward, and the aggregate demand curve will shift leftward.
Refer to Figure 4.3. Which diagram most likely represents the indifference map for a good and a "bad"?
A. A
B. B
C. C
D. D
__________is the amount of a product that is offered for sale at all possible prices that could prevail in a market.
Fill in the blank(s) with the appropriate word(s).