Crisps and Smith's are the only two bakeries that sell cookies in a small community. Crisps sells butter cookies while Smith's sells chocolate cookies
Which of the following will happen if Smith's lowers its price for cookies slightly below Crisps's price? A) Crisps will lose all its customers to Smith's.
B) Smith's will lose all its customers to Crisps.
C) Crisps will face a lower demand for its cookies.
D) Smith's will face a lower demand for its cookies.
C
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A decrease in the demand for labor will ________ real wages and ________ employment
A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease
In 1860 the ratio of farmers to manufacturing workers was roughly ____ ; by 1910 that ratio was ____
a. 1:1; 1:5 b. 1:3; 1:1 c. 3:1; 1:1 d. 10:1; 1:1
Unit excise taxes imposed on gasoline are
A. shared equally between the producer and the consumer. B. largely paid by the producers because gasoline is a necessity. C. largely paid by consumers because they are not very responsive to price changes. D. paid by the wholesalers of these products.
If a person is risk neutral, then she
A) is indifferent about playing a fair game. B) will pay a premium to avoid a fair game. C) has a horizontal utility function. D) has zero marginal utility of wealth.