Suppose that a retailer sells 500 six-packs of Dr. Pepper per day at $3.50/six-pack. Also, suppose that the cross-price elasticity between Dr. Pepper and Pepsi is 0.6. Then Dr. Pepper and Pepsi are ________ goods
Fill in the blank(s) with correct word
substitute
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The monopolist faces the market demand curve
a. True b. False Indicate whether the statement is true or false
A monopolist faces a
a. horizontal demand curve. b. vertical demand curve. c. downward-sloping demand curve. d. U-shaped demand curve.
James owns two houses. He rents one house to the Johnson family for $10,000 per year. He lives in the other house. If he were to rent the house in which he lives, he could earn $12,000 per year in rent. How much do the housing services provided by the two houses contribute to GDP?
a. $0 b. $10,000 c. $12,000 d. $22,000
Adverse selection is a problem that arises:
A. before the parties have entered into an agreement. B. either before or after the parties have entered into an agreement. C. rarely in any market. D. after the parties have voluntarily entered into an agreement.