Author Question: Refer to the scenario above. The optimal strategy for Rachel is to bid a price: A) above her ... (Read 82 times)

KimWrice · **on:** Jun 29, 2018

Refer to the scenario above. The optimal strategy for Rachel is to bid a price:

A) above her willingness to pay.
B) equal to half the amount she is willing to pay.
C) equal to 5/6 times her willingness to pay.
D) up to her willingness to pay.

Question 2

The above figure shows the market for bicycles. When there is a physical fitness craze so that everyone wants to exercise the

A) demand curve for bicycles shifts from D1 to D2.
B) demand curve for bicycles shifts from D2 to D1.
C) demand curve and the supply curve of bicycles do not shift.
D) supply curve of bicycles shifts from S1 to S2.