Assume Mimi's budget constraint is shown in the graph shown. If earrings cost $7, then hairbands must cost:

A fruit retailer buys 50 pounds of apples from the wholesale market every day. The retailer has observed that 20% of the apples bought each time are not of good quality

Because it is not possible for the retailer to check each apple before buying, how much should he pay for each pound if he values good apples for $1.40 per pound while he has a value of zero for bad quality apples? A) $1.12 per pound B) $1.20 per pound C) $1.40 per pound D) $2 per pound

Suppose banks incur heavy losses and become more cautious, increasing their demand for reserve. Make use of a graph of the loanable funds market to show how the Fed can use open market operations to maintain the same federal funds rate

What will be an ideal response?