A consumer expenditure survey reports the following information on entertainment spending: 20082009 PriceQuantityPriceQuantityMovies$75$87Concerts$302$352CDs$167$1510 Using 2008 as the base year, by how much does a "cost of entertainment" index increase between 2008 and 2009?
A. 13.4 percent
B. 8.6 percent
C. 3.9 percent
D. 29.4 percent
Answer: C
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If a firm expects that the price of its product will be higher in the future than it is today, then
A) the firm has an incentive to decrease supply now and increase supply in the future. B) the firm has an incentive to decrease quantity supplied now and increase quantity supplied in the future. C) the firm has an incentive to increase supply now and decrease supply in the future. D) the firm will go out of business.
What is a price taker? Discuss the assumptions used to obtain the perfectly competitive model
What will be an ideal response?
Refer to Figure d, which illustrates a game played by Travis and Darren. Travis's dominant strategy is:
A. North.
B. South.
C. East.
D. West.
In the market for widgets, the supply curve is the typical upward-sloping straight line, and the demand curve is the typical downward-sloping straight line. The equilibrium quantity in the market for widgets is 200 per month when there is no tax. Then a tax of $5 per widget is imposed. As a result, the government is able to raise $800 per month in tax revenue. We can conclude that the equilibrium
quantity of widgets has fallen by a. 40 per month. b. 50 per month. c. 75 per month. d. 100 per month.