Question

If Marcus is currently willing to trade 4 hockey tickets for 1 basketball ticket, then he...

If Marcus is currently willing to trade 4 hockey tickets for 1 basketball ticket, then he must like basketball more than hockey.
True or False: Explain your answer with the use of an appropriate diagram.

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

TRUE

reason- If Marcus always likes 4 hockey tickets for 1 basketball ticket, then he likes basketball more than hockey.

Since Marcus is willing to give up more hockey tickets in exchange for 1 basketball ticket.

This is true if the MRS is constant and Marcus considers basketball ticket and hockey ticket as substitute goods.

There is another possibility however that the preferences are convex and he is at a bundle where he has lots of hockey tickets relativw to basketball tickets. This means the MRS is diminishing and as he gives up more hockey tickets and consumes more basketball tickets and MRS will fall.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
1. Every 5th ticket in a raffle wins a prize. Jim buys 4 tickets. What is...
1. Every 5th ticket in a raffle wins a prize. Jim buys 4 tickets. What is the probability that he wins at least one prize? 2. Two dice are rolled 4 times. Find the probability that exactly two times the sum of the outcomes will be greater than 9. 3. Larry is driving from Boston, MA, to Hartford, CT, and he is speeding. The fines for speeding are $200 in CT and $150 in MA, and the probabilities of getting...
Gary is an outstanding basketball player. He lobs the ball at a height 4 ft above...
Gary is an outstanding basketball player. He lobs the ball at a height 4 ft above the ground and more than halfway across the court at a velocity of 15 m/s at an angle of 60° with respect to the horizontal. The basket is 10 ft off the ground and Gary makes it through the basket. (a) How far from the basket is Gary? (b) There were two possible answers in (a). Only one of them would have scored points....
A movie theater sells tickets to both students and adults. Below is the information about how...
A movie theater sells tickets to both students and adults. Below is the information about how much each potential buyer is willing to pay for a movie ticket: STUDENTS Name Maximum Price Willing to Pay Alex $4 Bob $5 Carmen $6 ADULTS Name Maximum Willingness to Pay Don $8 Emma $9 Fred $10 If the movie theater set the price at $5 for everyone, and therefore five people buy tickets (Bob, Carmen, Don, Emma, and Fred), its total revenue would...
1. True/False/Uncertain: There may always be someone who loses from trade. (Hint: when T/F/U questions do...
1. True/False/Uncertain: There may always be someone who loses from trade. (Hint: when T/F/U questions do not specify a model, your answer must consider all models that could apply, explain how they apply, and what their response would be.) 2. True/False/Uncertain: According to the Ricardian model, relative prices are always dictated by your country's labor productivity in each industry. 2. True/False/Uncertain: According to the Ricardian model, relative prices are always dictated by your country's labor productivity in each industry.
A-TRUE/FALSE-....1-. The quantity demanded is the quantity that consumers are willing and able to purchase at...
A-TRUE/FALSE-....1-. The quantity demanded is the quantity that consumers are willing and able to purchase at a given price. 2- A vertical reading of the demand curve gives the maximum price per unit that consumers are willing to pay for a particular quantity of a good. 3- There are more substitutes for oil as a jet fuel than for oil as a lubricant. 4-. An increase in income increases the demand for normal goods. 5-. Producer surplus can be defined...
2. Consider an economy with two goods, x and y with prices px and py, respectively....
2. Consider an economy with two goods, x and y with prices px and py, respectively. We observe the following choices made by Rob: if px > py he chooses to consume only y, and if py > px he chooses to consume only x. Suggest a utility function for Rob that represents preferences consistent with the given data. (5m) 3. Consider a market for used cars. There are many sellers and even more buyers. A seller values a high...
QUESTION 1 Under the Most Favored Nation trade standard, states must: A. Regulate all goods to...
QUESTION 1 Under the Most Favored Nation trade standard, states must: A. Regulate all goods to the same standard regardless of nation of origin. B. Treat trade in good and trade in services the same. C. Extend any tariff concession made to one trading partner to all trading partners. D. All of the above. E. None of the above. QUESTION 2 Which of the following does the Hackscher-Ohlin theory add to the classical labor theory of comparative advantage? A. Abundance...
Please state true false or Uncertain. Please explain in 4 or more sentences on why you...
Please state true false or Uncertain. Please explain in 4 or more sentences on why you choose it: 1) If an economy experiences an improvement in the average level of it production technologies, then, in the long run, both GDP and GDP per worker will increase 2)Suppose you always use your credit card for purchases. Your credit card limit must then be thought of as part of your money holdings.
Specie-Flow Mechanism 1.When Churchill returned England to the gold standard he did so at the old...
Specie-Flow Mechanism 1.When Churchill returned England to the gold standard he did so at the old parity prior to World War One. This exchange rate made price levels (when converted into a common currency) instantly higher in England than elsewhere. Using the specie-flow mechanism model, show how this policy change could lead to a massive outflow of gold from England. Use the appropriate diagram in your answer.
Question 1 A binomial distribution reflects two possible outcomes, which can be denoted as "success and...
Question 1 A binomial distribution reflects two possible outcomes, which can be denoted as "success and failure" True False 1 points Question 2 As a binomial distribution is discrete, we can not ever use the normal distribution? True False 1 points Question 3 The text mentions that in order to use the normal distribution for binomial distributions that EITHER n(p) OR n(q) must be > 5. True False 1 points Question 4 The reason that both n(p) and n(q) are...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT