Demand Schedules INDIVIDUAL DEMAND
SCHEDULE
MARKET DEMAND
SCHEDULE
Price of a
slice of Pizza
Quantity
Demanded
Price of a
Slice of Pizza
Quantity
Demanded
$ 1.00
5
$1.00
300
$2.00
4
$2.00
250
$3.00
3
$3.00
200
$4.00
2
$4.00
150
$5.00
1
$5.00
100
$6.00
0
50
$6.00
>>Figure 3.1 Both individual and market demand schedules record how changing
prices affect quantity demanded. Analyze Data In these schedules, how much pizza
does the market demand at $3 a slice?

Your company is starting a new r& d initiative: a development of a new drug that dramatically reduces the addiction to smoking. the expert team estimates the probability of developing the drug succesfully at 60% and a chance of losing the investment of 40%. if the project is successful, your company would earn profits (after deducting the investment) of 9,000 (thousand usd). if the development is unsuccessful, the whole investment will be lost -1,000 (thousand usd). your company's risk preference is given by the expected utility function: u(x) v1000 +x, where x is the monetary outcome of a project. calculate the expected profit of the project . calculate the expected utility of the project . find the certainty equivalent of this r& d initiative . find the risk premium of this r& d initiative e is the company risk-averse, risk-loving or risk-neutral? why do you think so?