A local street festival that previously sold bracelets in exchange for unlimited alcohol consumption is now concerned about the overconsumption of alcohol. If they switch to selling tickets per drink, will overall consumption at next year's festival decrease?
A. No, because the marginal cost per extra beer will decrease for consumers.
B. No, because the marginal cost per extra beer will increase for consumers.
C. Yes, because the marginal cost per extra beer will increase for consumers.
D. Yes, because the marginal benefit per extra beer will increase for consumers.
C. Yes, because the marginal cost per extra beer will increase for consumers.
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If a 20 percent decrease in the price of a good leads to a 15 percent increase in the quantity demanded, then demand is ________ and total revenue will ________ as a result of the fall in price
A) elastic; increase B) elastic; decrease C) inelastic; increase D) inelastic; decrease
If found guilty of violating antitrust law in their respective countries, managers in ________ and ________ can be imprisoned.
A) China; United States B) Japan; European Union C) United States; European Union D) China; European Union
When the price of a resource goes up and firms seek other suitable resources, this is called the
a. substitution in production effect. b. substitution in demand effect. c. elasticity effect. d. inelasticity effect.
If a $100 drop in the price of a $10,000 car resulted in an increase in the quantity of cars purchased from 100 to 110 and a $100 drop in the price of a $1,000 vacation rental resulted in an increase in the quantity of weekly vacation homes rented from 100 to 110, the price elasticity of demand is:
A. the same for both the car and the vacation rental. B. not comparable. C. less for the car. D. greater for the car.