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Social Science Clinic => Economics => Microeconomics => Topic started by: burton19126 on Jul 1, 2018

Title: The situation in which a person places greater value on a good as fewer and fewer people possess it ...
Post by: burton19126 on Jul 1, 2018

The situation in which a person places greater value on a good as fewer and fewer people possess it is called the
 
  A) Bandwagon Effect.
  B) Greater Value Effect.
  C) Snob Effect.
  D) Behavioral Effect.

Question 2

If firms in a competitive market are identical, the long-run market supply curve is horizontal.
 
  Indicate whether the statement is true or false

Title: The situation in which a person places greater value on a good as fewer and fewer people possess it ...
Post by: ryrychapman11 on Jul 1, 2018

Answer to Question 1

C

Answer to Question 2

False. The horizontal long-run supply curve also requires that factor prices do not increase with industry expansion and that the number of firms is not restricted.