Suppose that X and Y are substitutes. If the price of Y increases, how will this change the market equilibrium for X?
a. Equilibrium price and quantity both decline.
b. Equilibrium price declines, and equilibrium quantity rises.
c. Equilibrium price rises, and equilibrium quantity falls.
d. Equilibrium price and quantity both rise.
d
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Refer to the scenario above. The average payoff of the bet is:
A) $50. B) $100. C) -$50. D) -$100.
Why is the demand for a luxury generally more elastic (or less inelastic) than the demand for a necessity?
What will be an ideal response?
The quantity supplied of a good
a. is the amount that sellers would provide if the firms faced no constraints b. is the amount that sellers would provide if input prices were zero c. must match the amount actually purchased in the market d. is a fixed amount unaffected by the sellers' circumstances e. is subject to the constraints imposed by technology and input prices
Price discrimination leads to higher prices for all consumers
a. True b. False Indicate whether the statement is true or false