The demand curve for a product shifts below. Which of the following statement(s) is (are) a plausible explanation(s) for this situation?
A) The price of a competing product decreased.
B) A successful television advertising campaign was launched by the manufacturer of the product.
C) Assuming the commodity in question is a normal good, income available to the customer increased.
D) Both B and C
Answer: D
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When the supplier of an artificially scarce good charges a price greater than zero, then the:
a. good becomes nonexcludable. b. supplier reduces producer surplus from what it would be if the price were zero. c. supplier reduces consumer surplus from what it would be if the price were zero. d. supplier gives rise to the free-rider problem.
An oligopoly is a market structure in which there are
A) only a few buyers but many sellers. B) only a few sellers selling either an identical or differentiated product. C) many sellers selling a differentiated product. D) a few products sold by many sellers.