Potential buyers of older homes form their bids from imperfect estimates of a house's value As a consequence,
a. Lower quality houses are more likely to be up for sale
b. Higher quality houses are more likely to be up for sale
c. Both the higher and lower value houses would be offered for sale
d. No houses would be offered for sale
a
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Assume that both the demand curve and the supply curve for MP3 players shift to the right but the demand curve shifts more than the supply curve. As a result
A) the equilibrium price of MP3 players will decrease; the equilibrium quantity may increase or decrease. B) the equilibrium price of MP3 players will increase; the equilibrium quantity may increase or decrease. C) the equilibrium price of MP3 players may increase or decrease; the equilibrium quantity will increase. D) both the equilibrium price and quantity of MP3 players will increase.
When the supply of land is perfectly inelastic, the economic burden of an annual tax on land
a. falls entirely on the people who owned land when the tax was imposed. b. is passed on to future buyers of land in the form of higher prices. c. is split between present and future landowners. d. cannot be determined without information on the elasticity of the demand for land.
When all firms choose their best strategy given the strategies that all the other firms have chosen, the result is a Nash equilibrium
a. True b. False Indicate whether the statement is true or false
Jed's weekly budget for lunch is $24. He eats only pizza and burgers. Each pizza costs $6 and each burger costs$3. Jed knows that 2 pizzas and 4 burgers will give him a utility of 8. At his utility-maximizing point, Jed's utility is:
A. 8 B. 4 C. 6 D. 10