Theory of consumer choice

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Q1. Rich has $100,000 and Poore has $1,000. Which of these statements is most strongly supported by the theory of consumer choice?

Q2. Was Freddie Mac a major role in sub-prime mortgage? Were there any criminal activities, unethical activities, or just plain bad luck involved in the scandal?

Q3. How might Beth Young have found out when mortgage rates were at a level that would make refinancing her condominium more affordable?

Q4. During his first year at school, Guojun buys eight new college textbooks at a cost of $50 each. Used books cost $30 each. When the bookstore announces a 20% price increase in new texts and a 10% increase in used texts for next year, Guojun's father offers him $80 extra. Is Guojun better off, the same, or worse off after the price change? Why?

Reference no: EM136527

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