If Ed Sike (who you met in Chapter 8 ) lowers ticket prices to a point where the number of tickets demanded is greater than the number of seats available,
A) Ed will be in a good position to grant favors to his friends.
B) net revenue will be negative.
C) net revenue will be positive but not necessarily at the maximum level.
D) resources will not be allocated efficiently.
E) total revenue will be maximized.
A
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The compensated demand curve holds the consumer's utility fixed as the price changes
Indicate whether the statement is true or false
Wealth consists ultimately of
A) gold. B) land. C) money. D) whatever people value.
Tariffs and import quotas both decrease the amount of a good consumed and raise the price paid by domestic residents for the good
Indicate whether the statement is true or false
When there is an excess demand of a product in an unregulated market, the tendency is for
A. price to rise. B. price to decrease. C. quantity demanded to increase. D. quantity supplied to decrease.