As a result of losing his job, Uncle Roy dropped his cable TV service and instead bought a new iPod. For Uncle Roy,
A) cable is an inferior good and the iPod is a normal good.
B) cable is a normal good and the iPod is an inferior good.
C) both cable and the iPod are normal goods.
D) both cable and the iPod are inferior goods.
E) cable and the iPod are complementary goods.
B
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Marxists and leaders of communist economies actually often admire the market mechanism for its
A. efficiency in allocation of resources. B. fairness in distribution of output. C. maximization of net benefits for consumers. D. effectiveness in achieving high rates of growth.
Tasha decides that when homes in her neighborhood are selling for $150,000 she will not sell her home. When average prices rise to $175,000, she decides that she will put her home on the market. This is an example of:
a. market demand. b. market-day supply. c. an excess supply of homes. d. a positively-sloped supply curve. e. a negatively-sloped supply curve.
Describe how prices provide different incentives for buyers and sellers?
What will be an ideal response?
The Cournot model assumes that firm A maximizes its profit, holding firm B's output constant
What will be an ideal response?