The manager of a gas station noticed that when prices in the convenience store of the gas station decreased, gas sales increased. This could possibly be because the convenience store products are
a. usually complements to the gas sales
b. usually substitutes to the gas sales
c. usually unrelated to the gas sales
d. none of the above
a
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Marginal revenue is less than price for
A) all price searchers. B) all price takers. C) price searchers who can't restrict price reductions to the new purchases they want to attract. D) sellers who face inelastic demand curves.
Assume a new technology further reduces the cost of producing calculators. Also assume that consumers have cut back on their scheduled purchases in anticipation of even more cost-saving developments. As a result, we can expect
a. a decrease in price but no predictable change in output. b. a decrease in output but no predictable change in price. c. an increase in output but no predictable change in price. d. a predictable decrease in both output and price.
By reducing its output compared to a competitive market, a monopoly leads to
A) a more efficient use of resources. B) external benefits. C) external costs. D) a deadweight loss.
In a given market, how are the equilibrium price and the market-clearing price related?
a. There is no relationship. b. They are the same price. c. The market-clearing price exceeds the equilibrium price. d. The equilibrium price exceeds the market-clearing price.