Status quo bias is the:
A. general resistance to change, often stemming from loss aversion.
B. inefficiency that stems from constant change.
C. inefficiency that stems from anchoring and adjustment.
D. general enthusiasm for change, often stemming from regression to the mean.
Answer: A
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Suppose the market for Blu-rays has the demand and supply schedules shown in the table above. Suppose a decrease in the price of a Blu-ray player increases the quantity of disks demanded at each price by 20 million
What are the new equilibrium price and equilibrium quantity of Blu-rays?
Refer to Figure 16-3. Suppose Chantal practices price discrimination. Which of the following statements is true?
A) By charging different prices in markets A and B, Chantal can transfer some producer surplus into economic profit. B) Chantal's profits will be higher if she has uniform pricing instead of different prices for different groups of customers. C) By charging a higher price in market B, Chantal has transferred some of the consumer surplus from customers in market B to customers in market A. D) By charging a higher price in market B, Chantal can convert some consumer surplus into economic profit.
Real income per person was the same until:
A. the 1800s, when the Industrial Revolution caused it to grow. B. the 1500s, when the Renaissance caused it to grow. C. the 1900s, when wireless technology caused it to grow. D. Real income per person has been roughly the same for the last three centuries.
Suppose that when the price per ream of recycled printer paper rises from $4 to $4.50, the quantity demanded falls from 800 to 600 reams per day. Using the midpoint formula, what is the price elasticity of demand (in absolute value) over this range?
A) 0.003 B) 0.41 C) 2.43 D) 4