Or the first time in two years, Big G (the cereal division of General Mills) raised cereal prices by 6 percent. If, as a result of this price increase, the volume of all cereal sold by Big G changed by -3 percent, what can you infer about the own price elasticity of demand for Big G cereal? 7 It is inelastic 5/10 Can you predict whether revenues on sales of its Lucky Charms brand increased or decreased? points awarded Scored

a. No -you can't tell.
b. Yes-it decreased
c. Yes-it increased

Regarding the results of a swot analysis, organizational weaknesses are (a) internal factors that the organization may exploit for a competitive advantage (b) internal factors that the organization needs to fix in order to be competitive (c) mbo skills that should be emphasized (d) skills and capabilities that give an industry advantages problems that a specific industry needs to correct

3. saving two consumers, larry and jeff, have utility functions defined over the two periods of their lives: middle age (period zero) and retirement (period 1). they have the same income in period 0 of m dollars and they will not earn income in period 1. the interest rate they face is r. larry’s and jeff’s utility functions are as follow. = 0.5 + 0.5 and = 0.5 + 0.5 for each person is between zero and one and represents each consumer’s temporal discount econ 340: intermediate microeconomics. ben van kammen: purdue university. rate. a. write the budget constraint that applies to both jeff and larry in terms of consumption in each period and ), interest rate, and m. b. what is larry’s and what is jeff’s marginal rate of intertemporal substitution? c. what is the slope of the budget constraint? d. write each consumer’s condition for lifetime utility maximization. e. re-arrange the conditions from part (d) to solve for the ratio, . f. if > which consumer will save more of his middle age income? g. if > 1 1+ , in which period will larry consume more: = 0 or = 1?

If a bank protected by the fdic fails, then all of the individuals who have deposited money into the bank a. are restricted from ever using a bank again b. will be reimbursed by the federal government c. have lost all of their money and savings forever d. become members of the federal reserve bank