Which demand is more price elastic: The demand for all personal computers or the demand for Dell computers? Explain your answer
What will be an ideal response?
The demand for Dell computers is more elastic than the demand for all personal computers. Dell computers have very close substitutes (Gateway or Hewlett Packard computers, for example), but it is difficult to find a good substitute for personal computers as a group. Plus, anything that substitutes for personal computers also substitutes for Dell computers. So Dell computers have more very close substitutes than do personal computers as a group.
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Graphically an increase in the short-run aggregate supply line represents a(n) ________, and a shift leftward of the long-run aggregate supply line represents a(n) ________.
A. adverse inflation shock; shock to potential output B. favorable inflation shock; shock to potential output C. shock to potential output; favorable inflation shock D. shock to potential output; adverse inflation shock
Firms owning brand names like Coca-Cola that are so well known continue spending hundreds of millions of dollars on advertising
Since this doesn't seem to be an effort to increase consumer awareness what is the possible explanation for this behavior?
Under a system of laissez-faire, output selection is determined by consumers’ wants.
Answer the following statement true (T) or false (F)
One of the difficulties of the government privatizing a common resource is:
A. figuring out who owns what when many are using the resource. B. deciding which individuals will have to decrease their consumption. C. compounded the more users there are. D. All of these statements are true.