Suppose a concert by Rihanna and a basketball game played by the Houston Rockets are substitutes, then which of the following is TRUE?
A. If the price of a ticket to a Rockets game decreases, then the demand for Rihanna tickets will fall.
B. The price of a ticket to a Rockets game will always equal the price of a ticket to a Rihanna concert.
C. If the price of a ticket to a Rockets game increases, then the demand for Rihanna tickets will remain unchanged.
D. If the price of a ticket to a Rockets game increases, then the demand for Rihanna tickets will fall.
Answer: A
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The traditional typewriter market has collapsed over the past few decades because people prefer personal computers. Yet, some new typewriters continue to be produced and sold at historically low prices
How would you explain the decline in typewriter prices? A) Typewriter producers have become less greedy. B) The demand curve for typewriters has shifted to the left. C) The supply curve for typewriters has shifted to the right. D) The supply curve for typewriters has shifted to the left.
If a monopoly is operating along the portion of its demand curve where marginal revenue is positive, its
A) total revenue increases when price decreases. B) total revenue decreases when price decreases. C) total revenue remains the same when price decreases. D) total revenue is zero.
Labor strikes are a significant cause of lost production.
Answer the following statement true (T) or false (F)
An external benefit is the benefit experienced by people who:
A. do not decide how much of the good to produce or consume. B. did not know why they are experiencing the benefit. C. decide how much of the good to produce or consume. D. consume the good.