In presenting the idea of a demand curve, economists presume the most important variable in determining the quantity demanded is
A. the price of the product itself.
B. the prices of related goods.
C. consumer income.
D. consumer tastes.
Answer: A
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Which of the following is true of a second-price sealed-bid auction?
A) Bidders directly compete with each other. B) Bidders submit their bids simultaneously. C) Bidders know each other's bid. D) Bidders always bid above their willingness to pay.
If a 10 percent rise in airfares leads to a 5 percent increase in total expenditures on air travel, the price elasticity of demand for air travel in this range must be
a. 2. b. elastic. c. 0.5. d. inelastic.
The Clayton Act prohibits “all contracts, combinations and conspiracies in restraint of trade.”
Answer the following statement true (T) or false (F)
The goal of the consumer is to
a. maximize utility. b. be on the highest indifference curve. c. maximize satisfaction. d. All of the above are the goals of the consumer.