Auctions in recent years have resulted in higher prices paid for letters written by John Wilkes Booth than those written by Abraham Lincoln. Which of the following events would cause the price differences in these letters to get smaller?
A) The demand for Lincoln letters decreases and the demand for Booth letters increases.
B) The demand for Booth letters increases.
C) The demand for Lincoln letters increases and the supply of Booth letters increases.
D) The supply of Lincoln letters increases.
C
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According to the Lucas critique, changes in economic policy are likely to have important effects on
A) the available amounts of natural resources. B) the behavior of consumers and firms. C) the preferences of consumers. D) none of the above
The leading producer of manufactured goods in 1900 was
a. the United States. b. Germany. c. England. d. Canada.
Like monopolists, oligopolists are aware that an increase in the quantity of output always
a. reduces the price of their product. b. reduces their profit. c. reduces their revenue. d. reduces productivity.
Refer to the normal-form game of bargaining shown below.Union?Management??$0$250$500?$0($0, $0)($0, $250)($0, $500)?$250($250, $0)($250, $250)(-$10, -$10)?$500($500, $0)(-$10, -$10)(-$10, -$10)Suppose that management and the union are bargaining over how much of a $500 surplus to give to the union. It is assumed that the surplus can only be split into $250 increments. Furthermore, negotiations are set up such that management and the union must simultaneously and independently write down the amount of surplus to allocate to the union. The payoff structure to this one-shot bargaining game is listed in Figure 10-16. The number of inefficient outcomes resulting from the bargaining game is:
A. 3. B. 8. C. 5. D. 6.