Suppose you observe that the price of movie admissions decline and that the number of people attending movies declines as well. If only the demand curve or the supply curve shifts, this suggests that
A) movies are a normal good and incomes have increased.
B) high salaries for Hollywood actors have increased the cost of movie making.
C) movie theaters have experienced an increase in their operating costs due to increases in the minimum wage.
D) admission prices for other types of entertainment, such as live shows and sporting events, have also declined.
D
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The long-run aggregate supply curve occurs at the level of real GDP consistent with
A) no inflation. B) the natural rate of unemployment. C) individuals' tastes and preferences. D) low levels of inflation.
A single-price monopoly faces a linear demand curve. If the marginal revenue for the second unit is $20, then the marginal revenue for the
A) first unit is less than $20. B) third unit is less than $20. C) third unit is more than $20. D) third unit is also $20. E) more information is needed to determine if the marginal revenue for the third unit is more than, less than, or equal to $20.
Programs that reduce the incentive to work make income redistribution inefficient
a. True b. False Indicate whether the statement is true or false
Each point on the demand curve indicates
a. the demand for the product. b. the quantity demanded at that price. c. the amount that people need. d. the amount people want to buy at different income levels.