Which of the following shifts the demand curve for movies leftward?
A) a decrease in the price of NetFlix, a substitute for movies
B) a decrease in the price of movie tickets
C) an increase in movie star salaries
D) an increase in incomes, assuming movies are a normal good
E) an increase in the price of movie tickets
A
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Which market type has characteristics as follows: large number of firms, differentiated product?
A) perfect competition B) monopolistic competition C) oligopoly D) monopoly
GDP measures the economy's production of:
a. final goods and services. b. intermediate goods. c. consumer goods and services. d. capital goods.
A local store noticed that when it increased the price of milk from $2.50 to $3.50 per gallon, it sold 33% less milk. Since everything else remained the same, we would say the
a. demand for milk is perfectly elastic b. demand for milk is elastic c. demand for milk is perfectly inelastic d. demand for milk is unitary elastic e. law of supply does not apply in this situation
If buyers cannot distinguish between "lemons" and "cherries" in the used car market but sellers can, the price buyers are willing to pay for used cars will be:
A. high enough to guarantee that at least 50 percent of the used cars offered for sale are "cherries." B. equal to zero since no one will take the chance of purchasing a "lemon" even if the value of a car known to be a lemon is greater than zero. C. so low that sellers with "cherries" will be unwilling to sell. D. so low that sellers with "lemons" will be unwilling to sell.