Which of the following would not shift the demand curve for mp3 players?
a. a decrease in the price of mp3 players
b. a fad that makes mp3 players more popular among 12-25 year olds
c. an increase in the price of digital music downloads, a complement for mp3 players
d. a decrease in the price of satellite radio, a substitute for mp3 players
a
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Is the stock of a corporation with an excellent earnings record likely to be a better buy than the stock of a corporation doing very badly?
A) No, because the price of each stock will reflect differing situations. B) Only if their different earnings records have persisted for several years. C) Yes, because stocks with large dividend returns to owners are always good buys. D) Yes, because the future is more likely to resemble the past than to differ from it in any systematic way.
If an average cost pricing rule is imposed on the natural monopoly shown in the figure above, then the firm's economic profit will be
A) $9 million. B) $12 million. C) $0, that is, the firm's owners make only a normal profit. D) negative, that is, the firm incurs an economic loss.