Does the amusement park Six Flags Over Texas, in Arlington, Texas, share a market with the Texas Rangers pro baseball team, also located in Arlington, Texas? And if so, which one? Explain
It depends on the cross elasticities of demand between the amusement park and the baseball team. If it is
high, they do belong to the same market and the market would be entertainment. People may decide on a
Sunday morning to take the family out to a ball game or out to the park. They are credible substitutes. What
isn't credible is to suggest that they would choose between going to a ball game and going to the dentist.
You might also like to view...
Between 1921 and 1929 national output rose about _____%.
Fill in the blank(s) with the appropriate word(s).
The theory of efficient markets suggests that:
A) systemically important financial institutions are more likely to fail. B) long-term investments by banks are more profitable than short-term investments. C) interest rates and inflation rates are inversely related. D) all movements in stock markets are based on rational appraisals of new information.
Which statement is false?
A. American chief executive officers (CEOs) earn on average more than 400 times the salary of the average production worker. B. The effects of globalization has depressed American wage. C. Hourly wages and fringe benefits in the U.S. are the lowest of any industrial country. D. None of the statements are false.
In late 1994 and early 1995, the Mexican peso fell by more than 40 percent. In an effort to strengthen the peso, then Mexican President Zedillo concentrated on the effects inflation had on the value of the peso. His plan most likely included:
A. decreasing domestic taxes. B. increasing the money supply. C. increasing domestic taxes. D. increasing government spending.