When demand is price-elastic, an increase in price will lead to increased total consumer spending for the product.
Answer the following statement true (T) or false (F)
False
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In an oligopoly, which strategy - collusion or competition - resembles the choice of remaining silent in a prisoners' dilemma? Why?
The circular flow model primarily studies how decisions are made by what two groups?
a. consumers and suppliers b. households and firms c. government and households d. government and firms
When OPEC raised the price of crude oil in the 1970s, it caused the United States'
a. nonbinding price floor on gasoline to become binding. b. binding price floor on gasoline to become nonbinding. c. nonbinding price ceiling on gasoline to become binding. d. binding price ceiling on gasoline to become nonbinding.
When the free rider problem is present in a market:
A. the good is rival in consumption. B. the good will likely be overconsumed. C. what people pay often does not reflect the real value they put on a good. D. the good is easily excludable.