The demand curve for Apple iTune music downloads is unstable because
a. consumers of music downloads are irrational
b. Apple‘s production costs are unstable
c. it is unclear how Amazon, its primary competitor, will react to Apple's pricing strategy
d. the market for music downloads is unpredictable
e. consumers of music downloads have the option to download music for free
C
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Suppose that consumers expect the price of a product to decrease in the future. The result is that
A) the current demand for the product increases. B) the current demand for the product decreases. C) the current supply of the product decreases. D) the current supply of the product increases.
The equilibrium quantity of a good will increase and its equilibrium price might rise, fall, or stay the same when
A) its demand and supply both increase. B) its demand increases and supply decreases. C) its demand decreases and supply increases. D) its demand and supply both decrease.
Suppose that Y = 4,000 and we are at a point on the money demand schedule where (M/P) = 600. Should Y fall to 3,900, the same quantity of real money balances
A) will not be demanded under any conditions. B) will be demanded again provided the interest rate does not change. C) will be demanded again provided the interest rate rises by a certain amount. D) will be demanded again provided the interest rate falls by a certain amount.
If the total cost function is TC = 10Q3 - 50Q2 + 1000Q + 500, what is the equation for AVC?
What will be an ideal response?