Recall the Application about low-price guarantees and the prices of tires to answer the following question(s).Recall the Application. A study of the retail tire market suggests that prices are ________ in markets where firms offer low-price guarantees.
A. generally higher
B. generally lower
C. always lower
D. generally unchanged
Answer: A
You might also like to view...
The downward sloping labor demand curve demonstrates that as the ________ increases the ________ decreases
A) nominal wage; amount of labor supplied B) real wage; amount of labor supplied C) real wage; amount of labor hired D) nominal wage; amount of labor hired
If it was possible for one company to gain ownership control of all the uranium processing plants in the US, then: a. it would have strived to produce the socially efficient quantity
b. the forces of market demand and supply could have determined the price of uranium. c. government would have deregulated the market for uranium. d. it could set up barriers to entry to discourage competition.
Assume that goods X and Y are not Giffen goods. If the price of good X falls, a consumer will definitely
a. consume more of good X because her budget constraint has rotated outward. b. consume more of good X because her budget constraint has shifted outward. c. consume more of good Y because her budget constraint has rotated outward. d. consume more of good Y because her budget constraint has shifted outward.
A binding price floor means that:
A. government is imposing a maximum legal price that is typically below the equilibrium price. B. sellers are artificially restricting supply to raise price. C. government is imposing a minimum legal price that is typically above the equilibrium price. D. inflation is severe in this particular market.