If the customer moves first with a high price what is the best response of the shopkeeper
a. Accept the high price happily
b. Walk away from the deal
c. Throw the haggling customer out of your store
d. Laugh at the customer's face
a
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Assume a price floor is set above the equilibrium price. The result is a shortage
a. True b. False Indicate whether the statement is true or false
The corn basis in Nevada is about -$0.30/bu. The corn basis in Gilbert is about -$0.20/bu. Where should a corn farmer living in Ames, halfway between Nevada and Gilbert, ship his corn to make the most money?
A. Nevada. B. Gilbert. C. They both give the same return to the farmer if transportation to each destination costs the same. D. None of the above.
Total benefits in the table are:Control variableTotal BenefitsTotal CostsNet BenefitsMarginal BenefitMarginal CostMarginal Net BenefitQB(Q)C(Q)N(Q)MB(Q)MC(Q)MNB(Q)0000---190010080090010080021,700300C80020060032,4006001,800700E4004A1,0002,00060040020053,5001,5002,000500500F63,9002,1001,800D600-20074,2002,8001,400300700-40084,400B800200800-60094,5004,5000100900-800104,5005,500-1,00001,000-1,000
A. decreasing at an increasing rate. B. decreasing at a constant rate. C. increasing at a decreasing rate. D. increasing at a constant rate.
Ted has $600 a week to spend on clothing and food. The price of clothing is $30 and the price of food is $5. What is the equation for Ted's budget constraint, assuming he spends his entire budget?
A. $30 × Clothing + $5 × Food = $600 B. $30 × Clothing + $5 × Food > $600 C. $30 × Clothing + $5 × Food < $600 D. $30 × Clothing + $5 × Food ? $600