Suppose that 50 hot dogs are demanded at a particular price. if the price of hot dogs rises from that price by 5 percent, the number of hot dogs demanded falls to 48. using the midpoint approach to calculate the price elasticity of demand, it follows that the

An insurance company estimates the probability of an earthquake in the next year to be 0.0015. the average damage done to a house by an earthquake it estimates to be $90,000. if the company offers earthquake insurance for $150, what is company`s expected value of the policy? hint: think, is it profitable for the insurance company or not? will they gain (positive expected value) or lose (negative expected value)? if the expected value is negative, remember to show "-" sign. no "+" sign needed for the positive expected value