Consumers value the product-specific services for a new smartphone at $30 and the marginal cost to the retailers for providing the product-specific services is $40. If the retailers provide the product-specific services, which of the following is true?
A) The shift in the market demand will be exactly double the shift in the market supply.
B) The shift in the market demand will equal the shift in the market supply.
C) The shift in the market demand will exceed the shift in the market supply.
D) The shift in the market supply will exceed the shift in the market demand.
D) The shift in the market supply will exceed the shift in the market demand.
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A perfectly elastic demand is one in which the:
A. demand curve is perfectly vertical. B. demand curve is perfectly horizontal. C. price elasticity is exactly 1. D. response to a change in price is immediate.
Social Security checks began to be issued in:
A. 1929. B. 1930. C. 1940. D. 1955.
The existence of network externalities implies that: a. the value of a network falls as the number of members rises. b. the opportunity cost of switching networks is higher for larger networks. c. smaller networks are more successful than larger ones
d. newer networks are more likely to become locked in. e. only the most efficient and superior technology prevails in the market.
Using Figure 1 above, if the aggregate demand curve shifts from AD2 to AD3 the result in the short run would be:
A. P1 and Y2. B. P2 and Y3. C. P3 and Y1. D. P2 and Y2.