Why might a rise in the price of electric razors result in an increase in demand for nonelectric razors?
(A) Because nonelectric razors are more plentiful than electric razors.
(B) Because people might decide to shift to nonelectric razors to save money.
(C) Because electric razors are normal goods but nonelectric razors are inferior goods.
(D) Because nonelectric razors work better than electric razors.
Ans: (B) Because people might decide to shift to nonelectric razors to save money.
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Results of the ultimatum game indicate that most people value fairness enough that they will refuse to participate in a transaction they consider unfair, even if they are worse off financially as a result
Indicate whether the statement is true or false
Which statement is false?
A. Rent is an excellent means of efficiently allocating the use of scarce land. B. There is a very strong current in economic thought that denies the landlord's claim to rent. C. "The land shall not be sold forever" is a biblical admonition with which some people still agree. D. None of the statements is false.
Recall the Application about price discrimination using refillable soda bottles to answer the following question(s).Recall the Application. Price discrimination using recyclable soda bottles will work only if:
A. some consumers will buy the soda only if given a discount. B. all consumers are willing to buy the soda at the higher price. C. all consumers will not buy the soda at the lower price. D. the seller can only sell the refillable bottles for more than twice the cost of producing it.
Innovation creates the opportunity to:
A. quickly exit industries. B. lose money spent on research and development. C. earn positive economic profits. D. sustain zero economic profits in a single industry in the long run.