Reference no: EM136505
Q. Amazon instant Video charges $4 per movie rental per day. If your demand curve for movie rentals is given by P = 16-3Q, where P is the rental price ($/day) and Q is the quantity demanded (movies per year), what is the maximum annual membership fee you would be willing to pay to join Amazon Instant Video? Draw a graph.
1. Explain the paradox of why new cars usually lose a large fraction of their market value the moment they are driven from the showroom. Identify the economic principle that explains this paradox. Why might bad cars drive good cars out of the used-car market? Give at least two possible solutions to resolve this paradox.
2. Your bike is worth $200 and if you park it outside on campus there is a 10% chance that it will be stolen.
a. What is the expected value of your bike in the scenario described above?
b. Your utility function for wealth is U = (wealth) ^2. The bike is your only possession. Campus security has a bike check in that will guard your bike for $20 so there will be no risk of loss. Do you take the campus security deal?
c. What is the maximum you would pay security to check in your bike?
d. Next suppose your utility function for wealth is U = 100x (wealth). What is the maximum you will pay the campus security for the safekeeping service now?
e. Now suppose your utility function is U= (square root) Wealth. What is the maximum you will pay for the bike check-in now?
f. Are you risk loving, risk neutral or risk averse in each scenario described above? Why?
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Holding medic and feduc fixed
: Do sibs have the expected effect. Explain. Holding medic and feduc fixed, by how much do sibs have to increase to reduce predicted years of education by one year.
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Describe the physical changes that would occur in sim
: What effect might this have on cell lineages during development. Describe the physical changes that would occur in SIM medium if you inoculated an organism that was negative for hydrogen sulfide but positive for indole production and motility.
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Least two possible solutions to resolve paradox
: Why might bad cars drive good cars out of the used-car market. Give at least two possible solutions to resolve this paradox.
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Clarify the difference in their efforts to collect oxygen
: Clarify the difference in their efforts to collect oxygen. Polychaetes have lateral, fleshy parapodia beset with numerous setae, and well developed head appendages such as jaws, tentacles and eyes. What function(s) do you think about parapodia serve.
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Risk neutral or risk averse in each scenario
: Explain the paradox of why new cars usually lose a large fraction of their market value the moment they are driven from the showroom. Identify the economic principle that explains this paradox.
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Express the genotypes of the adults in the cross
: Analyze the data using the chi-squared fit test to determine if the frequencies of phenotypes are what would be expected from this cross.
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Utility function for wealth
: Now suppose your utility functioin is U= (square root)Wealth. What is the maximum you will pay for the bike check-in now.
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What is the reason for the symptoms
: Roges Staubauch has severe arthritis and has been taking prednisone for two months. He isn't feeling well, complains of repeated colds, and has become really puff in his appearance. What is the reason for this symptoms.
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Exchange rate between the swiss franc and the dollar
: Calculate the purchasing power parity exchange rate between the Swiss franc and the dollar. Based on your calculation, is the SF overvalued or undervalued.
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