Answer:
The equilibrium price is expected to decrease
Explanation:
Here, we want to state what will happen to the equilibrium price when the supply go a product increases but the demand stays the same
What will happen is that the equilibrium price is expected to fall since in this particular case the supply of the product will actually exceed the demand for it
So all things being equal, the demand for the product at increased supply will drive a decrease in equilibrium price
B. that promoted social, labor, and economic issues
Answer:
a. 3,900
Explanation:
We find the probability of healthy persons & the weak out of the total population in the town.
Probability of healthy persons
P(h) = 600/1000
P(h) = 0.6
Probability of weak persons
P(w) = 400/1000
P(w) = 0.4
We find the pay off for both the healthy and the weak, then add up to get the expected value or the minimal annual premium
Expected Value = 0.6*$500 + 0.4*$9000
Expected Value = $300 + $9000
Expected Value = $3,900
So, the annual premium must be at least $3,900.