Log in
Economics
2
answers
0
watching
44
views

I need help with Pre-Law. Would the economics side of the app help? 

Watch
2
answers
0
watching
44
views

For unlimited access to Homework Help, a Homework+ subscription is required.

Unlock all answers

Get 1 free homework help answer.
Already have an account? Log in
Share
Darryn D'Souza
Darryn D'SouzaLv10
28 Sep 2019
Already have an account? Log in
Share

Related textbook solutions

Principles of Economics
2nd Edition, 2017
Openstax
ISBN: 9781947172364
Principles of Macroeconomics
2 Edition,
Openstax
ISBN: 9781947172388
Principles of Microeconomics
2 Edition,
Openstax
ISBN: 9781947172340

Related questions

Bon App is a French restaurant that recently increased the average price of its meals by 4%. As a result, the number of customers dropped by 3%. Based on this information, what is the price elasticity of demand for meals at Bon App? How will this 4% increase in the average price of meals impact total revenue at Bon App? (10 points) Another French restaurant in the area that competes with the Bon App decided to reduce the average price of its meals by 3%. How will this decision likely impact the demand for meals at Bon App? (5 points) Assume that the average disposable income in the area in which it operates increases by 5% over the last year. As a result, the number of customers at Bon App increased by 3%. Based on this information, what is the income elasticity of demand for meals at Bon App? Are meals at Bon App considered normal goods? (10 points)

Briefly comment on the following statement: "The first law of economics is scarcity, and the first law of politics is to disregard the first law of economics".

1) Insurance and social policy

You are making an app with a 5% chance of making a ton-load of money, and 95% chance of earning nothing. Your utility is the square root of income (Utility = Y1/2); you will have $10,000,0001/2 happiness if your app succeeds but 01/2 happiness if it fails.

a) (2 points) What is the expected value of your app? How much money can you expect to make? What is your utility at that income (if you know that your income will be the expected value of your app)?

Note that in EXCEL, the square root function is “=X^.5” for the number X

b) (1 point) What is your expected utility from your app? (Note: this is the weighted average of utility when the app succeeds and when it fails where the weight is the probability of success.)

c) (2 points) Why do people buy insurance? How can insurance companies profit? What happens to expected utility when people can buy insurance at a fair market price?

d) (2 points) What is moral hazard and what is adverse selection. How do these affect insurance markets? Give examples from the marketing of veterinary insurance. Would you expect markets with moral hazard and adverse selection to provide the optimal amount of veterinary insurance at an efficient price?

Weekly leaderboard

Home
Homework Help 3,900,000
Economics 400,000
Start filling in the gaps now
Log in