Which of the following is an example of the snob effect?
A) The fewer consumers that buy the operating system, the fewer the applications that will be available.
B) The more people that buy a luxury watch, the less value consumers put on the watch.
C) The fewer ATMs available in the city, the fewer consumers want to join the network.
D) None of the above.
B
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Define price elasticity of demand. What does it measure?
What will be an ideal response?
Financial assets that represent the partial ownership of a firm and ability to share in its profits are called:
A. equities. B. debt certificates. C. intermediaries. D. credit risks.
The price charged by oligopolists will
a. equal the equilibrium price in a price-takers market if the oligopolists collude. b. equal the monopoly price if the oligopolists do not collude. c. generally fall between the monopoly and competitive market equilibrium prices. d. be the same whether the oligopolists cooperate with one another or not; only profit is affected.
Which of the following is an example of shoe-leather cost?
a. Diane has to shut down her supermarket for a day in order to change the prices on everything. b. Viktor has to pay a value added tax on raw materials that he is manufacturing into goods for resale. c. Zara has to calculate the depreciation of each of the goods in her office each year. d. Ishmael goes to the ATM twice a week because consumer prices have been fluctuating so rapidly.