Which of the following explains why theater prices for popcorn are three or four times higher than the popcorn price in the grocery store?
A. Grocery stores are satisfied with normal profit while theaters seek economic profit.
B. The grocery store sells a much higher volume and gets its profits that way.
C. The cost of popping the popcorn is high.
D. The demand curve for popcorn in a theater is more inelastic than the demand for popcorn at the grocery store.
Answer: D
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Why does an increase in supply lead to lower prices?
What will be an ideal response?
The U.S. economy is experiencing falling output, falling employment, falling incomes and rising unemployment. These conditions best describe a business cycle
A) expansion. B) peak. C) trend. D) recession. E) trough.
Which of the following are examples of goods that have been subject to voluntary export restraints?
A) Japanese cars and Chinese solar panels B) Belgian chocolates and French wines C) French wines and cheeses D) Japanese sushi and German cars E) Taiwanese electronics and Canadian barley
You would be more willing to buy AT&T bonds (holding everything else constant) if
A) the brokerage commissions on bond sales become cheaper. B) interest rates are expected to rise. C) your wealth has decreased. D) you expect diamonds to appreciate in value.