Answer:
e. increase as the probability of a boom economy increases.
Explanation:
The most economic growth occurs when the economy is in boom state. This results in the highest rate of return on investments compared to all other states such as normal, recession. In this case, if the probability of boom economy increases, stock S will have an overall increase in expected return; it means that there is higher chance of earning 12% return which is the highest among those in other economy states. This makes choice E correct.
Answer:
Option D.
Explanation:
The demand function for good X is

where,
is price of good X,
is price of good Y and M is income.
It is given that the price of good X is $1, the price of good Y is $10, and income is $100.
Substitute
,
and M = 100 in the given function.



None of the statements associated with this question are correct.
Therefore, the correct option is D.