Scarlett developed an economic model to describe the behavior of consumers according to the good price, and their income and tastes. All else equal, her model predicts that an increase in the price of the good may increase or decrease the number of units purchased. What can be said about Scarlett's model?
A) The model's prediction is ambiguous.
B) The model's prediction is not ambiguous.
C) The model has no assumptions.
D) B and C
A
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The United States is a country with a high saving rate
Indicate whether the statement is true or false
The figure above shows the demand curve, marginal revenue curve, and marginal cost curve. The deadweight loss when the market has a monopoly producer is
A) ace. B) abf. C) bcd. D) bcef. E) acd.
Suppose a consumer's income increases from $30,000 to $36,000. As a result, the consumer increases her purchases of compact disks (CDs) from 25 CDs to 30 CDs. What is the consumer's income elasticity of demand for CDs?
A) 0.5 B) 1.0 C) 1.5 D) 2.0
Which of the following is not an example of an oligopolistic barrier to entry?
a. diseconomies of scale b. legal restrictions c. advertising and brand proliferation d. high start-up costs e. control over an essential resource