The reservation price of good X is
A. the price at which one would be indifferent between good X and simply keeping the money.
B. the cost of producing good X.
C. the market price for a good.
D. any price above what you would be willing to pay for the good.
Answer: A
You might also like to view...
Which of the following statements is true?
A) Economic growth always reduces poverty. B) Economic growth is ineffective in reducing both poverty and inequality. C) Economic growth always reduces inequality. D) Economic growth can reduce poverty only if it is not associated with a significant rise in inequality.
A price maker is a firm that:
A) has the power to affect the price of the product it sells. B) earns economic profits in both the short run and the long run. C) can sell any quantity of its product at the prevailing market price. D) sells its products at a price equal to the marginal cost of production.
Copyrights, which grant special privileges to artists, musicians, and writers
A) destroy property rights. B) expand property rights. C) neither destroy nor expand property rights because they are part of the Bill of Rights. D) both destroy and expand property rights.
A rise in the price of a good causes producers to supply more of the good. This statement illustrates
A) the law of supply. B) the law of demand. C) a change in supply. D) the nature of an inferior good.