Jamal, Lawson, and Kyle have been standing in line for almost an hour waiting to be served at Kirala, a popular new Japanese restaurant. It is possible that some of the people in line won't be served at all before the restaurant closes
Which of the following could explain why the restaurant does not simply raise prices high enough to eliminate the lines?
a. In situations where consumption takes place publicly, demand for the product is also influenced by how many other people are buying the product. Consequently, a popular restaurant that increased its prices enough to eliminate lines might find that it had also eliminated its popularity.
b. Firms may sometimes not raise their prices for fear that it violates people's sense of fairness and might alienate customers.
c. The demand for restaurant meals is relatively elastic and if the firm raises prices it will lower its profits.
A) a only B) a and b only C) a and c only D) a, b, and c
B
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Refer to Figure 4.5. If all 10 students choose Dash, each student will earn ________ extra points
A) 0 B) 2 C) 4 D) 6
Constitutional economists
A) assert that within a given set of institutions, constraints, laws and rules, outcomes might be the same no matter who is elected to office. B) study the type of constraints that individuals might seek to place upon themselves in order to achieve some objective that doesn't seem achievable in a non-constrainable environment. C) assert that better outcomes arise from changing the political party in power at any given point in time than from changing institutions and constraints. D) b and c E) a and b
The direct exchange of goods and services for other goods and services is known as
A. barter. B. purchasing power parity. C. primitive trade. D. nonmarket trade.
A monopolist who has a ________ and perfectly price discriminates appropriates all consumer surplus as profit.
A. horizontal ATC schedule B. vertical ATC schedule C. demand curve which is the same as its MR curve D. downward-sloping MR curve