Suppose that video game discs are a normal good. If the income of video game players increases, you predict that in the market for video games,
A. equilibrium price will increase, and quantity will decrease.
B. both equilibrium price and quantity will fall.
C. equilibrium price will fall, but quantity will increase.
D. both equilibrium price and quantity will increase.
Answer: D
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An imperfectly competitive firm has the following total cost curve: C = 100 + 4Q. What is average fixed cost equal to when Q = 10?
What will be an ideal response?
Which of the following cities has a Federal Reserve Bank located in it?
A. Detroit B. Miami C. Philadelphia D. Denver
What are two strategies that entrepreneurs use to earn more than the normal profit? Will these strategies earn economic profits that normally persist over time? Explain
What will be an ideal response?
Recently a labor union argued that the standard of living of its members was falling. A critic of the union argued that this could not possibly be true because the union had been acquiring increases in the nominal incomes of its members through
collective bargaining. Is the critic correct? A. Yes, because when you have a large nominal income, your standard of living automatically increases. B. No, because real income may fall if prices increase more proportionately than the increase in nominal income. C. No, because real income may fall if prices increase less proportionately than the increases in nominal income. D. Yes, because real income may fall if prices increase less proportionately than the increases in nominal income.