If the apartment owner decides to fine both the roommates if the apartment is dirty, such that now if neither of them clean they each get a 5 utility loss, what would the new equilibrium be now?
a. John cleans, Joe doesn't
b. Joe cleans, John doesn't
c. Neither of them clean the apartment
d. Both A&B
d
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If the inflation rate is 5 percent and the real interest rate is 2.5 percent, then the nominal interest rate is
A) 10 percent. B) -2.5 percent. C) 2.5 percent. D) 7.5 percent. E) 2 percent.
If a good has a price elasticity of demand coefficient less than one, then:
a. this good has an elastic demand. b. this good has an inelastic demand. c. a 10 percent increase in the price will result in a greater than 10 percent decrease in the quantity demanded. d. the demand curve will be vertical.
If the quantity of public goods produced were decided by market forces (supply and demand),
a. there would be more goods provided than would be optimal b. there would be fewer goods provided than would be optimal c. the markets would provide the optimal number of goods d. prices would be optimal, but the optimal quantity of goods would not be produced e. the firms producing the public goods would earn excess profit
Dumping occurs when a firm
A) sells too much of a good in a foreign country. B) sells in a foreign country at prices that are below fair value. C) sells in its home market at prices that are below the average price charged by its competitors. D) sells in a foreign market at prices that are below the prices charged by firms based in the foreign market.