Description Which of the following two commodities are likely to have a cross price elasticity of d ...

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Description Which of the following two commodities are likely to have a cross price elasticity of demand that is negative? A. Tea and cream. B. Coffee and Tea. C. Coke and Pepsi. D. Food and Shelter. 1 points QUESTION 2 The market demand function for a good is given by: P=20-Q. IF the price of the good is $10, the consumer surplus is: A. $50. B. $100. C. Cannot be determined without more information. D. $10. 1 points QUESTION 3 If the manufacturer of a high quality mobile phone offers a warranty, then all manufacturers of mobile phones have to offer warranties, irrespective of quality. This is an example of: A. The expected utility hypothesis. B. The full disclosure principle. C. The Lemons principle. D. The costly-to-fake principle. 1 points QUESTION 4 Which of the following is True for a risk-seeker/risk-lover? He/She has a utility function for money that is convex. He/She has a utility function for money that is a straight line. He/She prefers to reject fair gambles. He/She is indifferent between accepting and rejecting fair gambles. 1 points QUESTION 5 Which of the following is Not a signal? A. A degree from a reputed university. B. Conspicuous consumption. C. Reduching consumption when price increases. D. A toad croaking to reveal its size. 1 points QUESTION 6 The market demand curve for a commodity is given by: P=15-(Q/10). Use the point-slope method to find the price elasticity when the price is $10. QUESTION 7 Homer has a wealth of 5 and his utility function for money is: U(M)=(1-1/M). He has an accident on his job and is planning to sue his employer. He could win with a probability of 0.5 and get damages of 6. If he loses, he will get no damages. Moe is a risk-neutral lawyer who has an opportunity cost of 2 and who can help Homer to file a case. (a) Will Homer sue if Moe charges 2 to cover his opportunity cost? (b) Can Moe offer a fee schedule that can induce Homer to sue? If so, determine this schedule.