What is the effect on the equilibrium price and equilibrium quantity of theater tickets if the price of an orchestra ticket increases and the wage rate paid to actorsactors increases?? The equilibrium price of a theater ticket ______ and the equilibrium quantity? ______.
A. always falls; increases
B. always falls; decreases
C. rises; remains the same
D. change; does not change
E. rises; increases, decreases, or remains the same
Ans: E. rises; increases, decreases, or remains the same
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When neither player has a dominant strategy
A) game theory will not provide information. B) no Nash equilibrium exists. C) at least one Nash equilibrium exists. D) the game cannot be analyzed.
If the demand for corn is elastic, then:
a. there are not many substitutes for the consumption of corn. b. the price elasticity of demand for corn is less than -1. c. a decrease in price will reduce total revenue for corn producers. d. an increase in price will increase total revenue for corn producers. e. consumers will continue buying the same quantity even if price increases.
Suppose one year ago the price index was 120 and Maria purchased $20,000 worth of bonds. One year later the price index is 126 . Maria redeems her bonds for $22,700 and is in a 40 percent tax bracket. What is Maria's real after-tax rate of interest to the nearest tenth of a percent?
a. 5.1 percent b. 3.1 percent c. 2.1 percent d. 2.4 percent
In the Cournot model, when a new firm begins production it assumes its demand curve is
A. the market demand plus the amount the other firm is selling. B. the same as the competing firm's demand curve. C. one-half of the competing firm's demand curve. D. the market demand less the amount the other firm is selling.