Scarcity affects
A. only poor people.
B. only middle income people.
C. all people.
D. only rich people.
Answer: C
You might also like to view...
While price discrimination is possible between two markets it is not possible in more than two
Indicate whether the statement is true or false
When the price of a good rises, the price is transmitting information indicating that the good has become relatively
A) scarcer. B) less scarce. C) more plentiful in supply. D) b and c
Figure 5-4
Refer to . The inefficient equilibrium price and quantity are
a.
$1.90 and 38 units, respectively.
b.
$1.80 and 35 units, respectively.
c.
$1.60 and 42 units, respectively.
d.
$1.35 and 58 units, respectively.
Figure 9.4 represents the market for used 12 megapixel digital cameras. Suppose buyers are willing to pay $400 for a plum (high-quality) used digital camera and $200 for a lemon (low-quality) used digital camera. Initially buyers believe that 50% of used digital cameras in the market are lemons (low quality). Compared to the outcome with neutral expectations, how many fewer digital cameras are sold in equilibrium?
A. 90 B. 110 C. 140 D. The number of cameras sold in equilibrium is the same as the outcome with neutral expectations.