Other things constant, an increase in interest rates will
A) increase your incentive to borrow.
B) increase your incentive to save.
C) increase your incentive to buy a new car on credit.
D) reduce your incentive to save.
B) increase your incentive to save.
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The above figure shows the market for pizza. Which figure shows the effect of an increase in the price of a complement such as soda?
A) Figure A B) Figure B C) Figure C D) Figure D
The paradoxical nature of oligopoly can be demonstrated by the fact that, even though the monopoly outcome is best for the oligopolists,
a. they collude to set the output level equal to the Nash equilibrium level of output. b. they have incentives to increase production above the monopoly outcome. c. they do not behave as profit maximizers. d. self-interest juxtaposes the profits earned at the Nash equilibrium.