Return to the case of Jan, the hyperbolic discounter from the previous question. Suppose she can sign a contract that requires her to give up money equivalent to a loss of X utils if she does not undertake the action. Assume she does not behave consistent with her plans without this contract. How high would the contractual value of X have to be to prevent her inconsistency?

The utility-maximizing rule:

A) is inconsistent with the law of demand. C) implies a leftward shifting demand curve. B) implies a perfectly elastic demand curve. D) is consistent with the law of demand.

Why would irrigated farming not become more profitable if the federal government lowered the price farmers had to pay for irrigation water?

A) Farmers would have to pay more for electricity to pump the water. B) The cost of owning or renting land that could be irrigated would rise. C) The prices of irrigated crops would not rise. D) Water is a marginal cost in farming. E) Water is a sunk cost in farming.