If the price of a movie download falls, the rental rate of DVDs ________ and the equilibrium quantity of DVDs rented ________
A) rises; decreases
B) rises; increases
C) falls; decreases
D) falls; increases
C
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Why are many companies concerned about brand management?
What will be an ideal response?
A monopolistically competitive firm can convince buyers that its product has value by differentiating its product to suit consumers' preferences
Indicate whether the statement is true or false
The price elasticity of demand coefficient for a good will be greater:
a. if close substitutes exist. b. if minor complements exist. c. in the short-run. d. if a small portion of the budget will be spent on it.
Susan buys automobile insurance from Provident Insurance Company. If Susan avoids having an accident for three years, Provident will reduce the premiums she has to pay for her insurance. Nevertheless, she routinely drives while eating or texting and speeds up to try to make it through yellow lights
a. This is an adverse selection problem which should be corrected with government intervention. b. Susan is a principal and Provident is an agent in this principal-agent problem. c. This is a moral hazard problem. d. There is no way for Provident to determine whether Susan is a cautious or risky driver.