Crisps and Smith's are the only two bakeries that sell cookies in a small community. Crisps sells butter cookies while Smith's sells chocolate cookies
Which of the following will happen if Smith's lowers its price for cookies slightly below Crisps's price? A) Crisps will lose all its customers to Smith's.
B) Smith's will lose all its customers to Crisps.
C) Crisps will face a lower demand for its cookies.
D) Smith's will face a lower demand for its cookies.
C
You might also like to view...
The above figure shows the Lorenz curve for wealth for the nation of Rusha. If the government were to confiscate half of the wealth from the wealthiest twenty percent of the population and give it to the poorest twenty percent, then
A) wealth distribution would be more equal. B) wealth distribution would be unchanged. C) wealth distribution would be more unequal. D) the Lorenz curve would shift rightward.
What does the production possibility curve imply about the resource allocation?
a. Only some points on the curve are efficient. b. All points on the curve are equally efficient. c. A point which lies below the curve is more efficient. d. A point which lies above the curve is readily achievable.