A person is trying to decide if they should buy a lottery ticket. The ticket costs $2.00. If the ticket is a winner, the prize would be $1,000. Knowing that winning $1,000 is not a certain outcome (state of nature) , the person finds that the probability of winning is 0.001. Based on this information, the following payoff table can be constructed: 
Based on the expected monetary value of buying a ticket, what is the best decision?
Definitions:
Shortage/Surplus
An economic condition where the quantity demanded is greater than (shortage) or less than (surplus) the quantity supplied at the market price.
Demand Equation
A mathematical representation of the relationship between the quantity of a good demanded and its price.
Supply Equation
A mathematical formula that represents the relationship between the quantity of a good supplied and its price.
Price Ceiling
A maximum price set by the government for particular goods and services that cannot legally be charged above to prevent prices from being too high.
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