By drawing a demand curve with price on the vertical axis and quantity on the horizontal axis, economists assume that the most important determinant of the demand for a good is
A) consumer income.
B) consumer tastes and preferences.
C) the price of the good.
D) the quality of the good.
Answer: C
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Suppose a graph is drawn to show a consumer's preferences for football tickets and basketball tickets. The quantity of football tickets is measured on the horizontal axis
If the price-consumption curve is horizontal when the price of football tickets changes, then A) football tickets are an inferior good. B) the demand for football tickets is perfectly elastic. C) the demand for football tickets is unit elastic. D) the demand curve for football tickets will be horizontal.
In NASCAR, a race winner might win, say, $500,000, whereas second place wins $450,000. Why might NASCAR have a 10% reduction in prize money from first and second place?
A) To ensure that there is enough money to pay those who finish near last. B) To motivate drivers to take risks they might not otherwise take. C) To motivate drivers to not take risks they might otherwise take. D) NASCAR is a cartel.