The market demand for The Federalist Papers is likely to be more elastic than the market demand for a best-selling mystery novel
Indicate whether the statement is true or false
FALSE
You might also like to view...
Liz loves to eat popcorn. Still, the more she eats, the less she wants each additional bite. Her marginal utility from popcorn is
A) diminishing. B) negative. C) increasing. D) zero.
Which of the following is true of a firm that can successfully practice price discrimination?
a. Its total revenue is often reduced. b. It appropriates a part of the consumer surplus. c. It has no way of distinguishing between types of customers. d. It has no market power in the industry. e. It must be a perfectly competitive firm.
The natural monopoly in Figure 13.3 wants to charge a price of:
A. P1. B. P2. C. P3. D. P4.
Refer to the above figure. Suppose that the economy initially is operating along AD1. If the government seeks to close the recessionary gap by raising government spending without any change in taxation, which moves the aggregate demand curve from AD1 to AD2, then to AD3. Which of the following scenarios is TRUE?
A. Interest rates rise and investment falls. B. Both interest rates and investment rise. C. Interest rates fall and investment rises. D. Both interest rates and investment fall.