Assume Alan's budget constraint is demonstrated by line A in the graph shown. Which of the following could cause Alan's budget constraint to change to line B?
A. The price of books could have decreased.
B. The price of books could have increased.
C. The price of movie tickets could have increased.
D. The price of movie tickets could have decreased.
C. The price of movie tickets could have increased.
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Vertical contracts between manufacturers and retailers often aim to
a. Incentivize the retailers to undertake costly activities, which they otherwise may not realize the full benefits of on their own b. Reward the retailer for undertaking the risk inherent in introducing a new product c. Reimburse the retailer for the cost of managing an extended inventory d. All of the above
If demand is perfectly inelastic,
a. the percent change in quantity demanded divided by the percent change in price is zero b. the demand curve is a vertical line c. supply is perfectly inelastic too d. consumers have power over prices e. the percentage change in price divided by the percentage change in quantity demanded is zero
When there is an increase in the real interest rate in Japan, the Japanese yen will depreciate
a. True b. False Indicate whether the statement is true or false
Answer the following statements true (T) or false (F)
1. The relationship between the price of a book and the number of volumes purchased would be an example of microeconomics. 2. Some economic principles are based on physical phenomena. 3. If I stand up at a football game, I can see better. But if we all stand up, we block each other’s view. This is an example of the fallacy of composition. 4. The basic function of any economic system is to provide the framework for allocating scarce resources in a way that adequately satisfies unlimited wants.