Which will not, ceteris paribus, cause the demand curve for good A to shift?
a. A change in the price of C, a substitute
b. A change in the price of A
c. A change in the price of B, a complement
d. An increase in average income
Answer: b. A change in the price of A
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A firm in a perfectly competitive industry is a
A) price taker. B) quantity taker. C) quality maker. D) price maker.
If average variable cost exceeds average fixed cost at a particular level of output: a. Profits must be positive
b. That fact is meaningless for deciding the quantity of output to produce. c. It is more likely that the output level is low relative to the designed capacity of the production facility than that the output level is low relative to the designed capacity of the production facility. d. Both b and c. are likely true.
Which of the following statements is true about the Canadian health care system?
a. Almost 50,000 Canadians travel abroad each year to avoid waiting lists for services. b. Canadian physicians are salaried employees of the provincial health plans. c. Canadians have the option of purchasing private health insurance if they can afford it. d. Canadian physicians are allowed to "balance bill" patients for certain high-cost procedures. e. Canadian hospitals have significant excess capacity that is used to treat patients from foreign countries.
When a firm engages in price discrimination, it sets marginal revenue equal to marginal cost for each separate set of consumers.
Answer the following statement true (T) or false (F)