Three Individuals Have $1000 and Identical Preferences for Gum,g,and Cigarettes,s,as

question 34

Multiple Choice

Three individuals have $1000 and identical preferences for gum,g,and cigarettes,s,as measured by the utility function U(g,s) = 10g^0.9s^0.1.The price of gum is $9 and the price of cigarettes is $12.What is the market surplus/shortage at a price of $12 when the supply of cigarettes is 5?

• A) There will be a shortage of 3 cigarettes.
• B) There will be a surplus of 3 cigarettes.
• C) There will be a shortage of 2/3 cigarettes.
• D) There will be a surplus of 2/3 cigarettes.

Recognize the criteria for distinguishing normal from abnormal behavior, including adaptive functioning, personal distress, and deviation from social norms.

Identify historical perspectives on abnormal behavior and the evolution of the medical model.

Critique the medical model and understand the arguments presented by its critics.

Grasp the definition, classification, and critique of abnormal behavior, including the role of cultural and social norms.

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Definitions:

WACC

Weighted Average Cost of Capital, a calculation that reflects the average rate of return a company is expected to pay to all its security holders.

After-Tax Value

The value of a transaction or investment after all taxes have been deducted.

Capital Structure

Refers to the blend of debt, equity, and other financing sources used by a company to fund its operations and growth endeavors.

Retained Earnings

The portion of net earnings not paid out as dividends but retained by the company to reinvest in its core business or to pay debt.