Scalping is likely to appear when a price is set below equilibrium price by the seller.
Answer the following statement true (T) or false (F)
True
Scalpers will make a profit when they buy a product at a price below the equilibrium price and sell it at a higher price. So if a market price is set below equilibrium price, profit potential exists, which encourages scalping.
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Suppose two economic models give the same predictions --- but one is simplistic and unrealistic in its assumptions while the other is rich in detail and resembles the real world more closely. If the sole goal of the economist is to predict, then the economist should use the simple and unrealistic model.
Answer the following statement true (T) or false (F)
Other things being equal, an increase in wages paid to workers in firms making digital devices will cause
A) the quantity of digital devices demanded to increase. B) the quantity of digital devices supplied to decrease. C) the supply of digital devices to decrease. D) the demand for digital devices to decrease.
Which type of unemployment is most likely to fall as a result of government policies that stimulate aggregate demand?
a. frictional unemployment b. structural unemployment c. natural unemployment d. cyclical unemployment
In 1991, the base year, GDP was 5000. In 1993 the GDP deflator was 106. We may conclude that
A. GDP rose to more than 5000 in 1993. B. GDP fell to less than 5000 in 1993. C. GDP remained at 5000 in 1993. D. None of the choices are correct.