Which of the following is most likely to be a private good?
D City fireworks display
If some activity creates positive externalities as well as private benefits, then economic theory suggests that the activity ought to be
D left alone.
The price elasticity of demand will increase with the length of the period to which the demand curve pertains because: (Points : 1)
A consumers' incomes will increase.
B the demand curve will shift outward.
C all prices will increase over time.
D consumers will be better able to find substitutes
A market is in equilibrium: (Points : 1)
A provided there is no surplus of the product.
Bat all prices above that shown by the intersection of the supply and demand curves.
Cif the amount producers want to sell is equal to the amount consumers want to buy.
D whenever the demand curve is downsloping and the supply curve is upsloping
The demand for most products varies directly with changes in consumer incomes. Such products are known as: (Points : 1)
A complementary goods.
B competitive goods.
C inferior goods.
D normal goods.
You are the sales manager for a software company and have been informed that the price elasticity of demand for your most popular software is less than one. To increase total revenues, you should: (Points : 1)
A increase the price of the software.
B decrease the price of the software.
C hold the price of the software constant.
D increase the supply of the software.