Suppose that 20,000 tickets were sold at $120 for an NBA game at Madison Square Garden in New York. The game was sold out and some fans could not get tickets. This suggests that
A) selling price was below equilibrium price.
B) selling price was above equilibrium price.
C) selling price was at equilibrium.
D) the game was advertised too heavily.
A
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Does a perfectly competitive producer have any incentive to undercut the current market price? Explain your answer
What will be an ideal response?
A decline in bank lending has the most significant effect on
A) small businesses. B) large businesses. C) state governments. D) federal government.
Betty is out on a first date with Barney. She decides to order the garden salad with dressing on the side in an effort to make a good first impression, even though she prefers leg of lamb. Economic theory:
A. cannot explain why someone would choose a meal that brings her less utility than another. B. would suggest that making a good impression with her choice will bring her more utility than ordering lamb and making a bad impression. C. would suggest that she values what Barney thinks of her and will derive negative utility if she does not impress him. D. cannot be used to explain matters of the heart.
Consider two people, Sandy Ross, who earns $25,000 . and Gary Belcher, who earns $50,000 . If the flat-tax rate is 20 percent, then:
a. the government collects a total of $20,000. b. Gary pays twice the tax amount Sandy pays. c. Gary pays three times the tax amount Sandy pays. d. Gary and Sandy pay exactly the same tax amount. e. Gary pays $15,000 in taxes.