A bucket contains 4 red balls and 3 blue balls. Assume that the balls are selected randomly without replacement.
a. Conditional on drawing a red ball first, what is the probability of selecting a blue ball second?
b. Conditional on drawing a blue ball first, what is the probability of selecting a blue ball second?
c. What is the (unconditional) probability of selecting a blue ball second?
d. A friend has been messing around with your bucket. You discover that in playing the ball draw game she selected a blue ball second. What is the probability that the first ball she selected was red?
e. Suppose that instead 3 red balls and 2 blue balls the bucket contained 300 red balls and 200 blue balls. What is the approximate probability that you would select 2 blue balls in 3 draws from the bucket?2 AnswersMathematics10 months ago
The budget constraint is expressed as p1X1+p2X2≤Y. Suppose that p1= $2.5,p2= $8, and Y= $100.
•(a)Graph the budget line in (X1, X2)-space, and please label the axes, intercepts and slope of the budget line, and opportunity set.
•(b)Why do we search along the budget line, instead of throughout the whole opportunity set, for the optimal bundle?
•(c)Suppose the the price of X2 falls top′2= $5. How does the picture from part(a) change?
•(d)Suppose that income falls to Y= $75 (and we still have that the new p′2= 5 from part(c)). How does the picture from part(c) change?1 AnswerEconomics11 months ago
Can someone give me an idea of what these would look like?
Draw the indifference curves in the (X1, X2)-space that would best align with preferences over the pairs of goods below
•(a)Darjeeling tea (X1) and Assam tea (X2), for someone who is equally as happy witha cup of one or the other.
•(b)Darjeeling tea (X1) and Assam tea (X2), for someone who finds one cup of Dar-jeeling tea as satisfying as two cups of Assam tea.
•(c)Printers (X1) and ink cartridges (X2), where one printer requires three cartridges.
•(d)Steak (X1) and lobster (X2) dinners over the course of a year, where you like bothbut prefer some variety.Homework Help11 months ago
In the market for raspberry pies, the demand and supply curves are given by:
q^S = 2 + p (Supply)
q^D = 30 − 3p (Demand)
•(a) Find the equilibrium price and quantity in this market.
•(b) What are the price elasticities of supply and demand in this market at the equilibrium price?
•(c) At a price of $4, is demand point elastic, inelastic, or unit elastic?
•(d)Calculate the price elasticity of demand between prices $6 and $8, using the mid-
point. Is demand elastic or inelastic around this portion of the demand curve?1 AnswerEconomics11 months ago