Refer to Scenario 8.2. The more elastic is demand for yachts,
A) the more Q will fall and the more P will rise.
B) the less Q will fall and the more P will rise.
C) the more Q will fall and the less P will rise.
D) the less Q will fall and the less P will rise.
E) the closer is the new equilibrium point to the old.
C
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Which of the following assumptions about human behavior is most likely to be accepted by behavioral economists?
A. People have preferences that are unstable and vary by context. B. People are almost entirely self-interested in their behavior. C. People plan out decisions well and possess lots of willpower. D. People eagerly and accurately calculate the benefits and costs of their decisions.
Refer to the above figure. If box D represents the product market and flow (6) represents consumption expenditures, then box C is:
A. businesses, flow (7) is goods and services, and flow (8) is revenue. B. businesses, flow (7) is revenue, and flow (8) is goods and services. C. households, flow (7) is goods and services, and flow (8) is revenue. D. households, flow (7) is revenue, and flow (8) is goods and services.