Movie theatres decided to increase the price of movie tickets. Holding other factors constant, what happens to the demand for popcorn in the movie theatres?
a. Demand for popcorn shifts to the left because popcorn and movies are substitute goods.
b. Demand for popcorn shifts to the left because popcorn and movies are complementary goods.
c. Demand for popcorn shifts to the right because popcorn and movies are substitute goods.
d. Demand for popcorn shifts to the right because popcorn and movies are complementary goods.
b
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You won a free ticket to see the latest Star Trek movie this Friday night (which you can costlessly resell for its face value of $15). Your favorite band is also performing on Friday and is your only alternative activity. Friday is your last chance to see either the movie or the band. Tickets to see your favorite band cost $30, and on any given day, you would be willing to pay as much as $50 for a ticket. Based on this information, what is your opportunity cost of going to see the Star Trek movie on Friday?
A. $30 B. $35 C. $50 D. $0
Why does government provide educational opportunities in the form of vouchers, private subsidies, and public provision?
What will be an ideal response?
Joe's increase in wages has been identical to the increase in the price level. Joe thinks that he is better off and has increased his expenditures. Joe's behavior is consistent with
A. a vertical aggregate supply curve. B. Say's law. C. the classical model. D. money illusion.
One way to avoid the free rider problem is
A) through mandates. B) for the government to provide the good or service. C) to use social pressure. D) All of the above.