What do you think Eminem's incentive is to give a free show? Was his decision made in self-interest or in the social interest? Explain your answer
What will be an ideal response?
Eminem likely wants to allow his most enthusiastic fans the op-portunity to see him in concert. He also has the incentive to promote his album by the publicity he gets from having the free concert and the re-sulting massive demand for tickets. This publicity will lead to increased sales of his album and increased income to him.
Eminem's decision to give a free concert had elements of both self-interest and social interest. To the extent that his decision was motivated by the free publicity and rise in album sales, the decision was motivated by self-interest. However to the extent that a desire to allow his most enthusiastic fans the chance to see him perform, the decision also had elements of social interest.
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The price of a new textbook is $60 in one year and $75 two years later, while the price of a used copy of the textbook increased from $25 to $37.50. The relative price of a new textbook
A) increased by 25 percent. B) increased from 2.4 to 3. C) decreased from 2.4 to 2.0. D) decreased from 1.4 to 1.25
In general, price controls have a:
A. smaller effect in the short run because demand and supply become less elastic over time. B. smaller effect in the long run since demand and supply become less elastic over time. C. larger effect in the short run since demand and supply become more elastic over time. D. larger effect in the long run because demand and supply become more elastic over time.