In each of the following, what happens to the urate? does the u-rate give an accurate impression of what’s happening in the labor market? a. sarah just lost her job and immediately begins looking for a new one. b. jon, a steelworker who has been out of work since his mill closed last year, becomes discouraged and gives up looking for work. c. sam, the sole earner in his family of 5, just lost his $80,000 job as a research scientist. immediately, d. he takes a part-time job at mcdonald’s until he can find another job in his field.

At a student café, there are equal numbers of two types of customers with the following values. the café owner cannot distinguish between the two types of students because many students without early classes arrive early anyway (i. e., she cannot price-discriminate). students with early classes students without early classes coffee 70 60 banana 51 101 the marginal cost of coffee is 10 and the marginal cost of a banana is 40. the café owner is considering three pricing strategies: 1. mixed bundling: price bundle of coffee and a banana for 161, or just a coffee for 70. 2. price separately: offer coffee at 60, price a banana at 101. 3. bundle only: coffee and a banana for 121. do not offer goods separately. assume that if the price of an item or bundle is no more than exactly equal to a student's willingness to pay, then the student will purchase the item or bundle. for simplicity, assume there is just one student with an early class, and one student without an early class. price strategy revenue from pricing strategy cost from pricing strategy profit from pricing strategy 1. mixed bundling $ $ $ 2. price separately $ $ $ 3. bundle only $ $ $ pricing strategy yields the highest profit for the café owner.