Why can superstar athletes and movie stars earn multimillion dollar salaries but superstar electricians and professors cannot?
a. Every customer in the market wants to enjoy the good supplied by the best producer.
b. Technology makes it possible for the best producer to supply every customer at low cost.
c. Customers are willing to pay more for entertainment than other services.
d. Both a and b are correct.
d
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An individual demand curve for a good is ____ her marginal utility curve for the good.
A. based on B. the mirror image around the vertical axis of C. twice as steep as D. half as steep as
The above figure shows the market for anti-freeze. The government imposes the sales tax shown in the figure on sellers. Automobile owners would pay a larger part of this tax than what is shown in the figure if the
A) demand were more elastic. B) demand were more inelastic. C) supply were more inelastic. D) None of the above because the buyers always pay the entire amount of the tax.
Information asymmetries are defined to be when:
A. one party to a transaction has more information that another. B. information isn't readily available to anyone. C. one party withholds information from the other party. D. both sides to a transaction have equal information.
Market demand is determined by all of the following except
A. Expectations about future income. B. Income. C. The number of potential sellers. D. Tastes.