For years Hugh R. Riskee enjoyed an 11% annual return on his S&P 500 mutual fund index. Last year he decided to sell his mutual fund, and invest it all in the Nasdaq 100 mutual fund index, in which he enjoyed a 14% annual return

Suppose that when the price of strawberries decreases, Simone increases her purchase of whipped cream. To Simone

A) strawberries and whipped cream are normal goods. B) strawberries and whipped cream are complements. C) strawberries are a normal good and whipped cream is an inferior good. D) strawberries and whipped cream and substitutes.

Refer to Scenario 1-4. Had the firm not produced and sold the last 500 cigars, would its profit be higher or lower, and if so by how much?

A) Its profit would be $500 lower. B) Its profit would be $1,500 lower. C) Its profit would be $500 higher. D) Its profit would be $1,000 higher.