The absolute price elasticity of demand for a product that has many good substitutes is probably
A) less than 1.
B) greater than 1.
C) equal to 1.
D) infinity.
B
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For consumers, computers are a complement to computer software. Suppose the price of a computer falls. Simultaneously, suppose that the number of companies selling computer software decreases
How do these changes affect the price and quantity of computer software?
Which of the following conditions can help prolong the life of a cartel?
A) There are only a few firms in the market and they all belong to the cartel. B) There are many firms in the market that are not members of the cartel. C) It is difficult to know what price any cartel member is actually charging. D) The cartel has no ability to punish members who cheat on the cartel.
Bobby's neighbor is growing a tree that is blocking Bobby's ocean view. Bobby is considering taking his neighbor to court. This is most likely an example of a:
a. considerate neighbor. b. public good. c. free rider. d. positive externality. e. negative externality.
Given the labor force, either more capital or better technology will shift the production function downward
a. True b. False Indicate whether the statement is true or false