The town of Ravenswood is trying to decide whether to hold its annual festival this year. The estimated cost of arranging the festival is $5,000 . About 2,000 people are expected to attend. Although the festival will be free and open to the public, the citizens of Ravenswood indicate that they would be willing to pay as much as $2 per person to attend. The best course of action for Ravenswood
would be _____.
a. to host the festival
b. to not host the festival
c. to impose an entry fee of $0.5
d. to host the festival and deny entry to those who do not pay
c
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The cross-price elasticity of demand between two goods that are substitutes can never be:
A. greater than one. B. positive. C. negative. D. less than one.
Which of the following is FALSE? All the BRICs
A) rank among the world's top 10 in population. B) have been transformed by reforms. C) have become more isolated and focused on domestic issues. D) are among the world's top 11 economies. E) have yet to fully realize their economic potential.
The fact that the washroom usually has paper towels left (free to the consumer) suggests that the marginal utility of paper towels quickly diminishes to 0 for each consumer
a. True b. False
When Sonoma Vineyards reduces the price of its Cabernet Sauvignon from $15 a bottle to $12 a bottle, the result is an increase in
A. the supply of this wine. B. the demand for this wine. C. the quantity of this wine demanded. D. the quantity of this wine supplied.