If Billy's reservation price on a snowboard is $250, how many snowboards would he buy if the market price of snowboards is $500?
A. 0
B. 1
C. 2
D. The amount of snowboards purchased would depend on Billy's income.
A. 0
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Pricing to Competition When ShorTech introduced its Quadrant mobile phone, it had few competitors and so it set a price of $500 when its unit cost was $350 . The economics consulting firm it hired to estimate the demand elasticity confirmed this was the
optimal price. Since then, entry has occurred that make customers more price conscious. When it rehired the economics consulting firm to estimate the demand elasticity, it found that demand had become more elastic at -4 . Also, it eked out cost savings and now has a unit cost of $300 . What price should ShorTech charge now?
Consumption or household spending of an economy comprises of both consumer spending and business spending
a. True b. False Indicate whether the statement is true or false
If point A on an indifference curve lies higher (measured vertically) than point B on the same curve, Point A automatically represents higher total utility than point B
a. True b. False Indicate whether the statement is true or false
When companies like Uber and Lyft join the ride-share market, what would we most likely expect to see cab drivers do to their prices?
A. Raise prices and advertise more. B. Leave their prices the same. C. Lower prices to stay competitive. D. Lower prices for a while and then raise them again.