Suppose you bought a concert ticket from Ticketmaster for $50, but when you get to the concert, there are a large number of people waiting outside who offer to pay you more than $50 for your ticket. What is probably true?
A. There is an excess demand for tickets at the Ticketmaster price.
B. There is an excess supply of tickets at the Ticketmaster price.
C. The Ticketmaster price is the equilibrium price.
D. The Ticketmaster price was above the equilibrium price.
Answer: A
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If the marginal propensity to consume (MPC) equals 0.9, the multiplier is _____
a. 1 b. 2 c. 5 d. 10 e. 12
A model is defined as a:
a. description of all variables affecting a situation. b. positive analysis of all variables affecting an event. c. simplified description of reality to understand and predict an economic event. d. prediction based on historical evidence.
The purpose of antitrust laws is to ______ concentrations of market power and ______ competition.
A.) increase; increase B.) decrease; decrease C.) increase; decrease D.) decrease; increase