People scalping tickets for a rock concert can sell their tickets for at least a normal profit
A. any time the rock group is popular.
B. when prices are too high.
C. only when there is excess supply.
D. when the price set by the concert hall is less than the market equilibrium price.
Answer: D
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If social regulation increases a firm's fixed and variable costs:
a. then both marginal cost and average total cost will increase, and the firm will produce more. b. then both marginal cost and average total cost will increase, and the firm will produce less. c. then both marginal cost and average total cost will decrease, and profits will increase. d. then marginal cost will increase, average total cost will be constant, and price will decline. e. then both price and quantity produced will fall.
If the price of grapes increases, total expenditures on grapes will decline if
a. there are few substitutes for grapes. b. the supply of grapes is inelastic. c. the demand for grapes is elastic. d. grapes are a normal good.