One In the News article in the text titled "The Real March Madness: Ticket Prices " described how professional scalpers use the Internet to sell hard-to-get tickets to concerts and sporting events. Apparently the initial price of the tickets being scalped was too
A. Low for equilibrium, resulting in a surplus of tickets.
B. High for equilibrium, resulting in a shortage of tickets.
C. High for equilibrium, resulting in a surplus of tickets.
D. Low for equilibrium, resulting in a shortage of tickets.
Answer: D
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Which of the following is likely to lead to a decrease in the demand for tennis balls?
A. An increase in the price of tennis balls. B. An increase in the price of the rubber used to make tennis balls. C. An increase in the price of tennis racquets. D. An increase in the expected future price of tennis balls.
The aggregate demand curve shows the
A) total amount of nominal goods that the participants in the economy want to purchase. B) amount of goods producers will produce as production costs fall. C) total amount of real goods that foreigners want to purchase. D) total amount of planned expenditures on goods and services at each possible price level.
Suppose Seth and Nathan are college students with the same annual income, yet Seth pays half of the annual income tax that Nathan does
Which statement best summarizes a possible issue with this outcome from a principle of tax policy perspective? a. It violates the principle of vertical equity. b. It violates the principle of diagonal equity. c. It violates the principle of horizontal equity. d. It violates the benefit principle.
If the price elasticity of demand for Cheer detergent is 3.0, then a
a. 12 percent drop in price leads to a 36 percent rise in the quantity demanded b. 12 percent drop in price leads to a 4 percent rise in the quantity demanded c. $1,000 drop in price leads to a 3,000-unit rise in the quantity demanded d. $1,000 drop in price leads to a 333-unit rise in the quantity demanded e. 12 percent rise in price leads to a 36 percent rise in the quantity demanded