Apen costs £50 in britain. an identical pen costs $70 in the united states when the exchange rate is £1 = $1.50. which of the following is correct? multiple choice
a. a trader can make money by buying the pen in britain and selling it in the united states at $70.
b. the deal is the same in both countries.
c. britain offers a better deal.
d. the u. s. offers a better deal.

David consumes two things: gasoline (g) and bread (b). david's utility function is u(g, b) = 10g^0.25 b^0.75. use the lagrange technique to solve for david's optimal choices of gasoline and bread as a function of the price of gasoline, p_g, the price of bread, p_b, and his income m. with recent decrease in the price of gasoline (maybe due to external shock such as shale gas production) does david increase his consumption of gasoline? for david, how does partial differential g/partial differential p_g depend on his income m? that is, how does david's change in gasoline consumption due to an increase in the price of gasoline depend on his income level? to answer these questions, find the cross-partial derivative, |partial differential^2 g/partial differential m partial differential p_g.