When profit-maximizing firms in competitive markets are earning profits, market demand must exceed market supply at the market equilibrium price. market supply must exceed market demand at the market equilibrium price. new firms will enter the market. the most inefficient firms will be encouraged to leave the market?

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?

Whom do progressive taxes assess? a. only a large percentage of high-income households b. only a large percentage of organizations c. a large percentage of high-income households and organizations d. a large percentage of low-income households e. a small percentage of high-income households

Now, use your previously-computed value as an approximation for sigma, and compute how many ears of the experimental corn the researcher needs in the study. don't forget, the margin of error and confidence level have already been given to you in a previous problem.