Jim is haggling with a car dealer over the sale price of a used car. When he entered the store, it was empty. During the negotiations, a second customers walks in, interested in that particular car, and the storekeeper rejects Jim's offer. This is because
a. The car dealer's disagreement value decreased
b. The car dealer's disagreement value increased
c. The car dealer's disagreement value did not change
d. None of the above
a
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Adverse selection is a
a. Pre-contractual problem b. Post contractual problem c. Post firing problem d. None of the above
A research firm finding concluded that the price elasticity of demand for movie tickets is elastic in the afternoon but inelastic in the evenings. Given this information, to increase overall revenue the theatre owners should
a. Reduce the ticket prices for the afternoon shows and reduce the ticket prices for the evening shows b. Increase the ticket prices for the afternoon shows and reduce the ticket prices for the evening shows c. Reduce the ticket prices for the afternoon shows and increase the ticket prices for the evening shows d. Increase the ticket prices for the afternoon shows and increase the ticket prices for the evening shows
When the demand and supply of grapes both decrease at the same time, we can safely predict that the: a. price of grapes will fall
b. price of grapes will rise. c. quantity of grapes exchanged will fall. d. quantity of grapes exchanged will rise.
A change in the price level will cause a shift in the expenditure schedule
a. True b. False Indicate whether the statement is true or false