Excludability matters because it:
A. creates a perceived scarcity that causes buyers to have an inelastic demand for the good.
B. creates a perceived scarcity that allows the seller to keep the price artificially high.
C. allows owners to set an enforceable price on a good.
D. allows consumers to control the price of a good.
Answer: C
You might also like to view...
Define asset market equilibrium and state the asset market equilibrium condition
What will be an ideal response?
An association of businesses that are jointly owned and operated by members for mutual benefit is a:
A) condominium. B) corporation. C) cooperative. D) joint tenancy.
The type of advertising used for an experience good is
A) informational advertising. B) persuasive advertising. C) search advertising. D) experience advertising.
The replacement ratio measures
a) The number of people in work who could be made redundant without affecting the size of the economy b) The number of people in employment relative to those unemployed c) the benefits available relative to wages that could be earned d) The number of people voluntarily unemployed