Ans: D) the substitution effect.
When movie ticket prices increase, families tend to spend less time watching movies and more time at home watching videos instead. This best reflects:
A) diminishing marginal utility
B) the income effect
C) the rationing function of markets
D) the substitution effect.
Economics
You might also like to view...
It is conventional to divide the nation's total production into four categories. Name and explain the four categories. In the United States, which category accounts for the largest share and the smallest share of the nation's total production?
What will be an ideal response?
Economics
If demand for a seller’s product is elastic, a price increase will decrease total revenue.
Answer the following statement true (T) or false (F)
Economics
A weapons producer sells guns to two countries that are at war with each other. The guns can be produced at a constant marginal cost of $10. The demand for guns from the two countries can be represented as:
QA = 100 - 2p QB = 80 - 4p Why is the weapons producer able to price discriminate? What price will it charge to each country?
Economics
An efficient allocation of resources requires each product's price to equal its marginal cost
a. True b. False Indicate whether the statement is true or false
Economics