Answer the following questions please? The key variable that answers the fundamental questions in microeconomics and what drives the economy is prices. Economic agents react to prices they face and the forces of demand and supply are the function of prices.

So the correct option is option a.

Positive economics refers to the statement of things as they are or a description of reality. So the correct option that best describes the positive economics is option a. That is, it is the way things are.

So the correct option is option a.

The example of perfect competition in a way can be stock market since there are large number of sellers and buyers of the same underlying stock and there are no barriers to entry of new buyers and sellers.

So the correct option is option C, the stock market.

The fact that water is more essential for life than diamond is true but the statement that twin forces of demand and supply dictate that water is just as expensive as diamond is false. Since the water on planet is available in abundance relative to diamond. While the demand for water might be high the supply is very low for diamond hence its price is higher than the price of water.

So the statement is false.

3. A yoga studio opens a site in a small town. As the only yoga studio in its market, it would have market power, i.e. to sell larger quantities, it would have to set lower prices. (a) The demand curve for memberships at the studio is P = 30- -Q for Q 300 where Q denotes number of memberships and P the price. Draw the demand curve for memberships at the in the (Q, P) co-ordinates (Q on horizontal axis). How many memberships can be sold at P = 20? (b) The fixed cost of running the studio is 700. A yoga instructor costs 300 to hire and each instructor can serve up to 50 members. Draw the cost curve for the gym. (c) Draw the average cost curve for the studio. Is it possible to operate the studio profitably? (d) What is the optimal price for a profit maximizing studio? How many instructors should be hired? (Hint: What is the marginal revenue for the studio?).Calculate (a) the amount financed, (b) the total finance charge, and (c) APR by formula. (Do not round intermediate calculations. Round the "Finance charge" to the nearest cent and "APR" to the nearest tenth percent.) Purchase price of a Down Number of monthly Amount Total of monthly Total finance APR used car payment payments financed payments charge 5.673 1.223 5.729.76What are the main differences between traditional economics and behavioral economics? Traditional economics is mainly theoretical. Cl Behavioral economics does not take as a given that decision makers are rational. 0 Traditional economics assumes that decision makers are fully' informed