Consider the following facts: AI chips and lithium batteries…

Consider the following facts: AI chips and lithium batteries are complements. The cross-price elasticity of AI chips is 1.25. We know that the price of Lithium batteries falls by 20 percent. By how much does the quantity demanded of AI chips change? Note: no need to use the Midpoint formula.

Which of the following statements are true: (i) Hermione has…

Which of the following statements are true: (i) Hermione has an absolute advantage over Harry in both Potions and Spells;(ii) The source of gains from trade between Hermione and Harry is that trade allows each toexploit increasing returns.(iii) If Hermione and Harry decide to trade, both will gain from trading.

Monica is considering whether she should buy the new iPhone…

Monica is considering whether she should buy the new iPhone that is now on sale. She is willing to pay $900 dollars for the iPhone. If Monica is a rational agent, under which of the following conditions will she choose to buy? (i) The dollar value of the phone is $850. (ii) The dollar value of the phone is $950. (iii) The dollar value of the phone is $899.

Refer to the following table for questions 9-10. Reservation…

Refer to the following table for questions 9-10. Reservation Prices and Costs in a small market for AI Chips Name of Consumer Reservation Price for 1 AI Chip (dollars)   Name of Seller Reservation Price for 1 AI Chip (dollars)  Alice 9   Apples 1 Ben 8   Bell 2 Carol 7   Chrome 3 Daniel 6   Dell 4 Ellen 5   Envy 5 Francis 4   Frost 6 Gwen 3   Groove 7 Hugo 2   HP 8 Ivonne 1   Intel 9 Jaimie 0   Jolt 10