Lou buys a Star Wars: The Force Awakens poster at a garage sale for $30 and resells it on eBay to Kyle for $60. Which of the following statements is true?
A) The transaction is economically inefficient.
B) The transaction has made Lou and Kyle better off.
C) The transaction has made Lou better off and Kyle worse off.
D) It is not possible for Kyle to enjoy any consumer surplus from this transaction.
B
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A network externality causes firms to sacrifice profits in the short run in order to satisfy their customers and increase their long-run profits
Indicate whether the statement is true or false
The bond supply and demand framework is easier to use when analyzing the effects of changes in ________, while the liquidity preference framework provides a simpler analysis of the effects from changes in income,
the price level, and the supply of ________. A) expected inflation; bonds B) expected inflation; money C) government budget deficits; bonds D) government budget deficits; money