3. (10 points) Suppose we have an agrarian economy that can utilize all its resources to produce either computer chips or wheat. Below is a table of possible combinations of both goods that can be produced if they are using their resources efficiently.

Bundling of Office Suites: An Economic Analysis (1) What are the optimal prices for Microsoft to charge for Word and Excel if it only sells the two products separately?

(4) Can Microsoft earn greater profits if it sells the two products as a bundle?

(3) What are the optimal prices for Microsoft to charge for Word and Excel if it only sells the two products separately?

(2) What is the optimal price for Microsoft to charge for Word and Excel if it only sells the two products as a bundle?

Consider a market where the price elasticity of the demand for streaming services is -0.6, the price elasticity of demand for movie tickets sold during the evenings is -0.8, and for matinee shows is -1.75. Suppose also that the cross elasticity of demand for movie tickets sold during the evenings with respect to the price of streaming services is 0.2, the cross elasticity of demand for matinee movie tickets with respect to the price of streaming services is 0.1, and the cross elasticity of demand for matinee shows with respect of the price of evenings shows is 1. Moreover, the income elasticity of demand for movie tickets sold during the evenings is 0.7, and the income elasticity of demand for matinee movie tickets is -0.3. Use this information to answer the following questions. 1. Suppose that the price of streaming services rises by 7%; what is the percentage change in the number of streaming service subscriptions? How would you characterize the demand for streaming services? Draw a theoretical diagram demonstrating this change. 2. Suppose that the price of streaming services rises by 7%; what is the percentage change in the quantity demanded of movie tickets for evening shows? Pay close attention to whether the answer is negative or positive; the sign is important. How would you characterize the relationship between both services? Draw a theoretical diagram demonstrating this change. 3. Suppose that the price of streaming services rises by 7%; what is the percentage change in the quantity demanded of movie tickets for matinee shows? Pay close attention to whether the answer is negative or positive; the sign is important. How would you characterize the relationship between both services? Draw a theoretical diagram demonstrating this change. 4. Suppose the price of streaming services rises by 7%; by how much would the price of movie tickets for matinee shows have to change for the quantity demanded to remain unchanged? Indicate whether the price should increase or decrease. Draw a theoretical diagram demonstrating this change. 5. Suppose that income increases by 12%; what is the percentage change in the quantity demanded of movie tickets sold during the evening? Pay close attention to whether the answer is negative or positive; the sign is important. How would you characterize the evening shows? Draw a theoretical diagram demonstrating this change. 6. Suppose that income increases by 12%; what is the percentage change in the quantity demanded of movie tickets for matinee shows? Pay close attention to whether the answer is negative or positive; the sign is important. How would you characterize the matinee shows? Draw a theoretical diagram demonstrating this change. 7. AMC Theaters is considering a 10% increase in movie ticket prices for all showtimes. If you were consulted about this proposal, what would your advice be? Explain your recommendation to AMC Theaters and the economic rationale behind it. Your report to AMC Theaters must include the percent change in total revenue resulting from implementing the 10% movie ticket price increase for both showtime groups. 8. What change would you expect in the number of moviegoers to the matinee shows if AMC Theaters increased the movie ticket price for the evening showtimes by 10%? Draw a theoretical diagram demonstrating this change.

1) Suppose we have an agrarian economy that can utilize all its resources to produce either computer chips or wheat. Below is a table of possible combinations of both goods that can be produced if they are using their resources efficiently. a) Draw this country's PPF with computers on X-Axis b) Label the parts of the graph that are "Unattainable", "Efficient", and Inefficient". c) What is the opportunity cost for this country to go from producing combination E to producing combination D? What about from B to A.

5. 10. The Surgeon General announces that eating carrots improves and promotes healthy vision. As a result, the equilibrium price of carrots a increases, and producer surplus decreases. b increases, and producer surplus increases. C decreases, and producer surplus increases. d decreases, and producer surplus decreases.

Estimating climate damages Suppose that you observe data on agricultural yields Yi, and temperature Ti, for a set of countries i. you estimate the econometric model

Consider the optimization problem: Question 3 f(x, y) = 20 - 2x + 3xy s. t. 4x + 2y = 100