Tie-in-sales require that a customer who buys one product (the tying good) must also ______.
a. pay switching costs to change from one brand (the tied brand) to another brand
b. buy a greater quantity of the tying good because many other consumers are buying it
c. buy another product (the tied good) that the customer needs to use the first product
d. pay more for it than would be charged by a competitor selling the same tying good
c. buy another product (the tied good) that the customer needs to use the first product
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The sum of consumption and investment is: a. total production. b. aggregate supply
c. aggregate disposable demand. d. aggregate expenditures.
The price paid by buyers in a market will increase if the government (i) increases a binding price floor in that market. (ii) increases a binding price ceiling in that market. (iii) decreases a tax on the good sold in that market
a. (ii) only b. (iii) only c. (i) and (ii) only d. (i), (ii), and (iii)
One reason consumers were able to assume an increasing amount of household debt during the 2000s is because:
A. interest rates were so low that it made borrowing easier. B. interest rates were so low that people found it very easy to save their extra income. C. even though interest rates were high, the inflated values of homes allowed them to afford it. D. even though interest rates were high, the herd instinct gave people a false confidence in their future wealth.
In imperfectly competitive markets
A. some competition may exist but only on price and not in other ways. B. some competition may exist in the markets. C. some competition may exist but only in other ways and not on price. D. there is no competition in the markets.