What leads to a decrease in the quantity demanded of a good or service?
What will be an ideal response?
The quantity demanded of a good or service decreases when the price of the product increases.
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An international lender of last resort creates a serious moral hazard problem because ________ and other ________ of banking institutions expect that they will be protected if a crisis occurs
A) depositors; debtors B) depositors; creditors C) borrowers; debtors D) borrowers; creditors
Refer to Figure 10.1. The minimum feasible price is ________
A) P1 B) P2 C) P3 D) P4 E) none of the above
Exhibit 14-2 Cigarette smoking dataJack enjoys smoking, while Jill fears that second-hand smoke will shorten her life. The following table shows the value Jack places on each cigarette he smokes, and the value Jill places on her shortened life. Use the table to answer the following question(s): Quantityof cigarettes Total value to Jackof cigarettes Days of life lost Total value to Jillof days lost 1 $ 50 1 $ 30 2 90 2 60 3 120 3 90 4 140 4 120 5 150 5 150 As shown in Exhibit 14-2, what is the socially efficient number of cigarettes?
A. 0. B. 1. C. 3. D. 5.
In a repeated game, cooperation can be enforced by the use of a trigger strategy that
A) leads to a higher payoff of the cheated upon player. B) reduces the payoff of the player that reneged the agreement. C) rewards the player that reneged the agreement. D) is a dominant strategy.