If a pizza seller reduces its prices, the price cut will
A) have no effect on the demand for competing sellers' pizza.
B) increase the seller's gross revenue.
C) increase the seller's net revenue.
D) shift the seller's demand curve if competing pizza sellers match the price decreases.
D
You might also like to view...
Since 1981, welfare rules have shifted the focus from work requirements to work incentives
Indicate whether the statement is true or false
If the bidders at a second-price auction have true values of $8, $7, $6, and $5, the item will sell for
a. $8 b. $7 c. just over $7 d. just under $7
Older people often reminisce about the "good old days" when prices were much lower. This is misplaced nostalgia primarily because in the "good old days,"
a. prices were not really that low. b. wages were much lower also. c. people worked longer hours. d. people had more leisure time.
Which of the following statements is correct?
a. If the buyer of a good gains, the seller must lose an equal amount. b. The value of goods is objective; it is equal to the cost of supplying the good. c. Opportunity costs will always be incurred when scarce resources are used to produce a good. d. Changes in incentives generally have no effect on human behavior.