Assume that the price for lawn care has fallen and sales of lawn care services have also fallen. One can conclude that
A) lawn care services are deliberately charging low prices because they want to discourage people from maintaining their own lawns.
B) the demand for lawn care service has decreased.
C) the law of supply has been violated.
D) the number of lawn care service companies has increased.
B
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The two-period dynamic monopoly model is more useful than the static monopoly model in analyzing monopoly behavior when
A) the product produced requires a bandwagon effect. B) the product produced generates a positive network externality. C) the monopoly initially uses a lower introductory price. D) All of the above situations.
The so-called "Lake Wobegon effect", where everyone in a group claim to be above average, illustrates the:
A. Confirmation bias B. Framing effect C. Overconfidence effect D. Self-serving bias