Why does a new hardcover Stephen King novel have a higher price than the paperback edition?
A) It costs more to produce.
B) The elasticity of demand differs.
C) The publisher is more greedy when marketing the hardcover edition.
D) The publisher is a price searcher on the hardcover editions and a price taker on the paperback editions.
B
You might also like to view...
The MP curve may be used to represent how ________
A) movements of the inflation rate are determined by the real interest rate B) monetary policy responds to changes in the real interest rate C) movements of the real interest rate are related to the inflation rate D) all of the above E) none of the above
Individual families exhibit remarkable year-to-year stability in income
Indicate whether the statement is true or false
Paying off the national debt would redistribute income from the
a. debt holders to the taxpayers. b. taxpayers to the major recipients of transfer payments. c. banks to the taxpayers. d. taxpayers to the debt holders.
Economists believe that the best way to stimulate investment in physical capital is to encourage:
A) higher rates of investment in human capital. B) more spending on infrastructure. C) the conservation of natural resources. D) higher rates of national savings.