Which of these events would be most likely to permanently shift an individual's demand curve for umbrellas to the right?
(A) He moves from a desert community to a rainy city by the ocean.
(B) Weather forecasters predict that a major hurricane will hit his city the coming week.
(C) The price of umbrellas decreases significantly as inexpensive umbrellas are imported from China.
(D) He buys a car, so he no longer needs to walk to and wait at a bus stop every morning to get to work.
Ans: (A) He moves from a desert community to a rainy city by the ocean.
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Some hotels in Myrtle Beach, South Carolina charge over $200 a night in the summer but sometimes as little as $99 a night in the winter. Use supply and demand analysis, including graphical and verbal explanation, for these winter "sales."
A Nash equilibrium is the:
A. output level that minimizes average total cost. B. strategy that maximizes the outcome of all the players. C. payoff that maximizes the joint payoff. D. set of strategies such that no player can improve his or her position by changing his or her own action.