The law of supply and the law of demand both rely on the concept of opportunity cost.
Answer the following statement true (T) or false (F)
True
Consumers would never pay more for a product than the cost value of the alternative uses of their money. Sellers will not be willing and able to sell a product for less than the value of their best forgone alternative. Both the law of supply and the law of demand rely on the concept of opportunity costs.
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If the demand for bathing suits and supply of bathing suits both decrease, then definitely the equilibrium
A) price will decrease. B) price will increase. C) quantity will increase. D) quantity will decrease.
As the period for firms to expand output is lengthened, the elasticity of the market supply curve will:
a. approach zero. b. increase. c. decrease. d. remain the same since time does not affect the elasticity of market supply.
Keynes believed that the best method for boosting an economy during a recession was to: a. increase money supply so that individuals would have more incentive to spend
b. cut government spending and increase taxes to reduce or even eliminate fiscal deficit. c. increase government spending and cut taxes so that consumers could spend more. d. cut both government spending and taxes to reduce government expenditure in the economy. e. increase both government spending and taxes to increase the role of government in the economy.
Cell phone companies often include an activation fee with the purchase of their service. This is an example of
A) collateral pricing. B) tying. C) predatory pricing. D) unfair competition.