A situation in which a market economy leads to too few or too many resources going to a particular economic activity is known as
A. a market failure.
B. competition.
C. excessive competition.
D. creative destruction.
Answer: A
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The price elasticity of demand for movies is approximately 1 and 500,000 tickets are sold per day. If the average price of a movie ticket increases by 20 percent, the number of tickets sold each day decreases to ________
A) 400,000 B) 300,000 C) 420,000 D) 475,000
What conditions are necessary for a cartel to work? Diagram equilibrium price and output determination in a collusive oligopoly market. Explain how a decrease in demand accompanied by cheating by members can help break up a cartel
What will be an ideal response?
If the supply curves for the following goods were plotted, they all would slope upward except one. Which is the exception?
a. red Corvettes b. yogurt c. diamond rings d. original copies of the Mona Lisa e. wine from Greece
If the demand for apples increases at the same time the supply of apples falls, the price of apples will tend to fall
a. True b. False Indicate whether the statement is true or false