If Kindle e-readers and Nook e-readers are substitutes, a higher price for Nooks would result in a(n)
a. increase in the demand for Nooks.
b. decrease in the demand for Nooks.
c. increase in the demand for Kindles.
d. decrease in the demand for Kindles.
c
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Suppose the price elasticity of demand for Good A is 2.4 and the price elasticity of demand for Good B is 1.2. Which of the following statements is consistent with these values?
A. Good A is a luxury and Good B is a necessity. B. Good A is a good several days after a price increase while Good B is that same good several years after the price increase. C. Good A is ice cream and Good B is mint chocolate chip ice cream. D. Good A is salt and Good B is college tuition.
At the profit-maximizing level of production, a perfectly competitive industry will produce an _____ level of production, and a monopolist produces an _____ level of production.
a. efficient; inefficient b. inefficient; efficient c. inefficient; inefficient d. efficient; efficient