The incentive to charge a low price even though it leads to lower profits in Figure 12.3 is an example of:
A. the duopolists' dilemma.
B. tying products.
C. scarcity and choice.
D. the economic problem.
Answer: A
You might also like to view...
In macroeconomics, we analyze
a. all of the following b. the overall performance of the economy as a whole c. arrangements through which specific products are exchanged d. influences on the decision making of particular households e. the factors that affect the decisions of individual firms
Which of the following would lead to an upward movement along the aggregate demand curve?
a. An increase in government purchases b. An increase in the money supply c. An increase in the price level d. A decrease in the money supply e. An increase in taxes
Which of the following statements best describes excess demand, or shortage?
a. The area between the supply and demand curves above the equilibrium point is called excess supply, or surplus. b. The area between the supply and demand curves below the equilibrium point is called excess supply, or surplus. c. The area between the supply and demand curves to the right of the equilibrium point is called excess supply, or surplus. d. The area between the supply and demand curves to the left of the equilibrium point is called excess supply, or surplus.
Using a Laspeyres index to calculate the Consumer Price Index (CPI)
A) weights quantities with current prices. B) weights prices with base-year quantities. C) weights quantities with base-year prices. D) weights prices with current year quantities.