Using supply and demand analysis, explain why there is sometimes a surplus of seats to watch a television show being taped and other times there is a shortage of such seats. Assume that tickets to view the taping of a television show are free of charge
The supply curve for seats in a television studio is vertical since there are a set number of seats in the studio at any point in time. The placement of the demand curve for seats depends upon the relative popularity of the show being taped. The demand curve for a relatively popular show will lie farther to the right than would the demand curve for a less popular, or new, show. At a price of zero, the quantity demanded of seats is very likely to exceed the quantity supplied of seats for a popular show, resulting in a shortage of seats. For a less popular show, the quantity supplied of seats could exceed the quantity demanded of seats at a price of zero, resulting in a surplus of seats.
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"The rich should pay higher income tax rates than the poor" is an example of a
A) normative statement. B) positive statement. C) descriptive statement. D) theoretical statement.
Which of the following is a positive economic statement?
A) The standard of living in the United States should be higher. B) The U.S. government should not have bailed out U.S. auto manufacturers. C) If the price of iPhones falls, a larger quantity of iPhones will be purchased. D) The government should revamp the health care system.
If the nominal interest rate is 2.9 percent and the rate of inflation is 0.6 percent in a given year, then what is the corresponding real rate of return?
A) 3.5 percent B) 2.3 percent C) -3.5 percent D) None of the above.
If the actual inflation rate exceeds the expected inflation rate, then: a. the economy is operating along the long-run Phillips curve
b. unemployment exceeds the natural rate. c. maintaining the existing unemployment rate will require increasing inflation in the long run. d. the actual rate will tend to fall toward the expected rate. e. unemployment will tend to decrease in the long run.