An article in the Wall Street Journal reports that “most cable TV operators are aware that cable is price sensitive, and there comes a point where people won’t pay the price.” Which demand curve in Figure 6-6 best illustrates this situation?
A. 1
B. 2
C. 3
D. 4
Answer: C
You might also like to view...
Using the figure as a guide, which of the following is FALSE with respect to profit maximization and the monopolist?
A) A monopolist (like any other firm) will select an output rate at which marginal revenue is equal to marginal cost, at the intersection of the marginal revenue curve and the marginal cost curve. B) The monopolist will produce quantity Qm and charge a price of Pm. C) When compared to a competitive situation, consumers pay a higher price to the monopolist, and consequently are forced to purchase more of a product as price varies directly with quantity demanded. D) Profits are the positive difference between total revenues and total costs.
In 2012, foreign ownership of the total public debt of the U.S. was about:
A. 20% B. 33% C. 60% D. 75%
Does a tax on sellers affect the supply curve?
A. Yes, it shifts up by the amount of the tax. B. Yes, it shifts to the right by the amount of the tax. C. Yes, it shifts to the left by the amount of the tax. D. No, there is change in the quantity supplied, but the supply curve does not move.
An increase in government spending might be an example of a ________ policy for the purpose of ________
A) monetary; lowering unemployment B) monetary; reducing inflation C) monetary; increasing saving D) fiscal; reducing inflation E) fiscal; lowering unemployment