Sue’s Shoe Shop is having a sale on shoes. The first pair of shoes is full price, the second is 25% off, and the third is 50% off. Describe how this sale relates to individual demand and marginal utility
Please provide the best answer for the statement.
Diminishing marginal utility specifies that in a given time period, the buyer of a product will derive less satisfaction from each additional unit of consumed. Sue’s Shoe Shop is taking advantage of this knowledge by offering a lower price for each additional shoe purchased. An individual may only demand one pair of shoes at full price and decide not to buy the second or third pairs, but as the price of those falls individuals are willing and able to purchase additional shoes.
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Refer to Exhibit 7-5. During year 3, Country Z experienced economic _____________ and _________________.
A) decline; deflation (falling price level) B) growth; inflation (rising price level) C) growth; deflation (falling price level) D) decline; inflation (rising price level)
You are at a sports memorabilia convention and you are the last of 100 people chosen to have your picture taken with either Joe Montana or Nolan Ryan
Your payoff depends on how quickly you can have your picture taken, as you have many other things you want to see at the convention. You have no preference with whom you have your picture taken, and since you were the last chosen you will be the last person in line to get your picture taken with the sports legend you select. Identify all the Nash equilibria in this game and explain your reasoning.
The Keynesian model is basically
A) a long-run theory. B) a short-run theory. C) a combination of long- and short-run theories. D) a theory about the economy in both the long run and the short run.
Exhibit 19-5 Balance sheet of Tucker National Bank Assets Liabilities Required reserves$ Checkable deposits$100,000 Excess reserves5,000 Loans 70,000 Total$100,000 Total$100,000 If all banks in the system shown in Exhibit 19-5 were identical to Tucker National Bank, the money multiplier for the system would be:
A. 4. B. 5. C. 10. D. 25.