Related to the Economics in Practice on page 203: Licenses to sell hot dogs in New York City's Central Park are considerably higher than the licenses to sell hot dogs in the rest of the city. Which of the following statements regarding the above information is true?
A. Despite this, hot dogs are less expensive in New York's Central Park than in the rest of the city.
B. Due to this, hot dogs are more expensive in New York's Central Park than in the rest of the city.
C. Despite this, hot dogs sell for the same price in New York's Central Park as they do in the rest of the city because the hot dog market is perfectly competitive.
D. Despite this, hot dogs sell for the same price in New York's Central Park as they do in the rest of the city because the city regulates the price of hot dogs.
Answer: B
You might also like to view...
Which oligopoly model results in firms successively undercutting their rivals' prices until the competitive outcome is reached?
a. The contestable market model. b. The Cournot model of oligopoly. c. The Bertrand model of oligopoly. d. The monopolistic competition model.
The success of self-employed entrepreneurs depends on
A) a strong need to stay with tried and true ways of doing things. B) high personal consumption rates. C) an ability to discover and act on valuable opportunities overlooked by others. D) the government and its investment in research and development.
Figure 4-25
Refer to . The price that sellers receive after the tax is imposed is
a.
P1.
b.
P2.
c.
P3.
d.
impossible to determine from the figure.
Supply-side inflation is caused by increases in aggregate supply.
Answer the following statement true (T) or false (F)