Suppose our tastes can be represented by the function 
. It is often observed that people become more rigid --- more set in their ways --- as they get older. What parameter is changing as we get older --- and how is it changing? (Explain.)
What will be an ideal response?
is increasing from a value as low as -1 to a value as high as 
--- causing our elasticity of substitution to fall from a value as high as 
to one as low as 0 as we grow older.You might also like to view...
Which is the most important category of Fed assets?
A) securities B) discount loans C) gold and SDR certificates D) cash items in the process of collection
If the government wanted a tax to not burden producers much, it would want to tax an industry with
a. elastic supply and demand curves. b. inelastic supply and demand curves. c. inelastic supply and elastic demand. d. elastic supply and inelastic demand.
The payoff matrix below shows the daily profit for two firms, Row Restaurant and Column Cafe, for two different strategies, publishing coupons in the student paper and not publishing coupons in the student paper. 
If Column Cafe publishes coupons and Row Restaurant does not, then Row Restaurant will earn ________, and Column Cafe will earn ________.
A. $120; $120 B. $25; $25 C. $200; $10 D. $10; $200
Suppose market demand and supply are given by Qd = 100 - 2P and QS = 5 + 3P. If a price floor of $30 is set, what will be size of the resulting surplus?
A. 55. B. 30. C. 0. D. 45.