A market has four individuals, each considering buying a grill for his backyard. Assume that grills come in only one size and model. Abe considers himself a grill-master, and finds a grill a necessity, so he is willing to pay $400 for a grill. Butch is a meat-lover, honing his grilling skills, and is willing to pay $350 for a grill. Collin just met the girl of his dreams, and she loves a good grilled steak, so in his effort to impress her he is willing to pay $320 for a grill. Daniel loves grilled shrimp and thinks it might be cheaper in the long run if he buys a grill instead of eating out every time he wants grilled shrimp, so he is willing to pay $200 for a grill.
Given the scenario described, if the market price of grills is $300, who participates in the market?
A. Only Abe, Butch, and Collin participate.
B. Only Collin and Daniel participate.
C. Only Abe and Butch participate.
D. Only Daniel participates.
A. Only Abe, Butch, and Collin participate.
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A normal good is defined by economists to be a good:
a. with a negatively-sloped demand curve. b. that is purchased by at least 75 percent of the population. c. that is bought by consumers with normal tastes. d. whose demand increases when incomes increase. e. whose demand decreases when incomes increase.
Bill Gates' recent purchase of a new Rolls-Royce automobile produced in Great Britain will:
a. increase the gross domestic product of the United States. b. have no effect on either country's GDP. c. decrease Great Britain's GDP. d. increase the net export component of U.S. gross domestic product. e. have to be subtracted from the U.S. GDP.