If Lady Gaga insists that tickets to her concert be sold for $300 each rather than the $500 each that could be charged as reflected by demand for those tickets, then the result will be
A. to eliminate $300 worth of economic rent per ticket.
B. that the demand for tickets will decrease.
C. that part of the economic rent will be dissipated to scalpers, radio station owners, etc.
D. to create an excess supply of tickets.
Answer: C
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Last year there were 6 pizza shops in town. This year there are only 4. Other things being equal, the decrease in the number of suppliers will
A) cause the market supply curve to shift to the right. B) increase the market demand for pizza. C) cause a decrease in the quantity supplied at each price. D) have no impact on market supply as long as the demand for pizza remains strong.
What type of economic system is commonly described as being controlled by an "invisible hand"?
A. a traditional economy B. a command economy C. a market economy D. a communist economy
One of the major drawbacks associated with parity pricing is that it
a. creates underproduction of food goods b. doesn't apply to consumption by cattle and hogs of feed corn c. causes many farmers to go out of business d. stifles the adoption of new technology e. helps the rich farmers more than the poor ones
Refer to Scenario 9.1 below to answer the question(s) that follow. SCENARIO 9.1: Amy borrowed $20,000 from her parents to open a bagel shop. She pays her parents a 5% yearly return on the money they lent her. Her other yearly fixed costs equal $9,000. Her variable costs equal $30,000. In her first year, Amy sold 40,000 dozen at a price of $1.50 per dozen. Refer to Scenario 9.1. Amy's total costs equal
A. $39,000. B. $40,000. C. $50,000. D. $59,000.