The management of a rental building faces a rent control situation, where it cannot charge more than $400 a month in rent on the apartment. The management knows that the apartments are high in demand and renters would be willing to be $1000 per month for them. The management decides to only offer the furniture and apartment together for rent. This is an example of
a. Tying
b. Bundling
c. Exclusion
d. Fraud
b
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A swap is
A) another name for a put option. B) another name for a call option. C) an agreement between two or more persons to exchange sets of cash flows over some future period. D) the name for the replacement of a futures contract by an options contract.
When the Fed sells government bonds in the open market, interest rates will rise.
a. true b. false
Starting from long-run equilibrium, a large decrease in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; lower; potential B. expansionary; higher; potential C. recessionary; lower; potential D. recessionary; lower; lower
Exhibit 5-7 Demand curve for concert tickets
?
According to Exhibit 5-7, the demand for concert tickets between the prices of $10 and $40 is:
A. inelastic. B. elastic. C. unitary elastic D. perfectly elastic.