When demand is inelastic, an increase in price leads to:
A an undetermined change in expenditures.
B a decrease in total expenditures.
C no change in total expenditures.
D an increase in total expenditures.
D an increase in total expenditures.
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A disagreement point is
A) an item of contention between the two bargaining players. B) a way of keeping score in a negotiation. C) the point in a negotiation where the players cannot reach an agreement. D) the outcome that occurs if there is no agreement in a bargain.
Many bars close to campuses have started offering cheaper beer to consumers with a student ID. These bars
a. Assume students have an inelastic demand curve b. Assume students have an elastic demand curve c. Are practicing price discrimination d. Both b and c
According to the process of creative destruction, at first the entrepreneur will be able to sell her product for
a. a low price because it is not well known. b. a high price because there is no competition. c. a fair price because these are contestable markets. d. at a price of zero until the market is created.
Which of the following term refers to the share of an activity’s marginal cost that is paid for by the persons who carry out the activity?
A. Beneficial cost B. Incidental cost C. Marginal private cost D. Marginal social cost