If Ann's utility function is U = 3W0.5, and she invests in a business which can yield $6,400 with probability 1/5, and $3600 with probability 4/5, then her Arrow-Pratt measure of risk aversion is

Changes in business activity are

A) referred to as business fluctuations. B) referred to as the ebb and flow of business. C) always undesirable. D) caused by the changing seasons every year.

At a supermarket, the price of organic milk increases by 20 percent. According to the law of demand, the sale of organic milk would most likely ______.

a. decrease by 10 percent b. increase by 15 percent c. fluctuate between a 5 percent increase and a 5 percent decrease d. stay approximately the same