(b) Frisbee manufacturers persuade the government that Frisbee production improves scientisls understanding of aerodynamics nnd is thus important for national security. A concerned Congress votes to impose a price floor $2 above the equilibrium price. What is the new market price?___________ How many Frisbees are sold?

(c) Irate college students march on Washington and demand a reduction in the price of Frisbees.  n even more concerned Congress votes to repeal the price floor and impose q price ceiling below the equilibrium price in (a). What is the new market price?__________ How many Frisbees are sold?__________

(a) Compute nominal GDP, real GDP, and the GDP deflator for year 2022, using 2020 ns the base year.__________，__________，__________

(b) Compute the percentage change in nominal GDP, real GDP, and ﹢he GDP deflator in 2022 from the preceding year. __________ For eqch year, identify the variable that does not change. Explain why your answer makes sense.__________

(c﹚ Did economic well-being increase more in 2021 or 2022? Explain.__________

(a) Graph Jamal's utility function. Ts he risk averse? Explain.________

(b) Does A or B offer Jamal a higher expected prize? Explain your raasanmg with appropriate caleulations. (Hint: The expected value of a random variable is the weighted average of the possible outcomes, where the probabilities are the weights.)________

(c﹚ Does A or B offer Jamal n higher expected utility? As expected utility________ B's expected utility ________? Again, show your calculations.

(d﹚ Should Jamal pick A or B2 Why?________

(1) (10 points) Show that the mean and variance of a binomial distribution with the number of trials n, the probability of success p, and the probability of failure q are µ = np and σ² = npq.

(2) (10 points) To find out whether a new serum will arrest leukemia, 9 mice, all with an advanced stage of the disease, are selected. 5 mice receive the treatment and 4 do not. Survival times, in years, from the time the experiment commenced are as follows:  Treatment: 2.1 5.3 1.4 4.6 0.9 No Treatment: 1.9 0.5 2.8 3.1At the 0.05 level of significance, can the serum be said to be effective? Assume the two populations to be normally distributed with equal variances.

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