If a bond pays $50 a year to its holder and you buy it for $200, what is your interest rate?

Selling a newspaper at retail for ten cents when it cost twenty cents wholesale may be profitable if

A) people who come in to buy a newspaper often make other purchases also. B) the wholesaler is also losing money. C) there are no substitutes for newspapers available. D) there is about to be a newspaper strike.

Show that the following preferences are not consistent for a rational individual

i. An individual when confronted with prices of p1 = $4 and p2 = $8 chooses q1 = 1 and q2 = 5. ii. The same individual facing prices of p1 = $6 and p2 = $9 chooses q1 = 5 and q2 = 3.