Obviously the movie theater doesnt charge more when

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Unformatted text preview: g. Critical Thinking 4. Carmelo says, “A movie theater charges the same price for a popular movie as it does for an unpopular movie. Obviously, the movie theater doesn’t charge more when demand for the movie is higher than when it is lower.” Shelby counters by saying, “Movie theaters often call the more popular movies special engagements and do not accept any discount tickets for them.” If Shelby is correct, does her point negate Carmelo’s? Explain your answer. Applying Economic Concepts 5. This section stated that people will earn high incomes if they can supply labor services that not many other people can supply, and for which demand is great. If you choose to go to college, how will this information affect your supply position? Section 2 Supply and Demand in Everyday Life 147 06 (128-153) EMC Chap 06 11/21/05 3:14 PM Page 148 The WWW Gets You More for Less I nformation is something people will pay to have. We see it a hundred times a day. A person who wants to sell her house will pay a real estate agent to inform her of where the buyers are who want to buy her house. A person who wants to buy bonds and stocks might pay a financial analyst to inform him of the best stocks and bonds to buy. Just as people buy goods and services every day, they also buy information every day. The World Wide Web The introduction of the World Wide Web has made it cheaper and easier to acquire certain information. You just need to know where to look. Buying a Car Let’s suppose that Jimmy wants to buy a Honda Accord. The list price of the car is $23,100. But Jimmy wants to know the invoice price; he wants to know what the dealer paid for the car. He can go to www.emcp.net/autobytel and find that the invoice price is $20,788. Knowing the invoice price gives Jimmy information that he didn’t have before. It is information that is useful to him when he is negotiating the price he will pay for the car. Suppose Jimmy just wants to know what cars are especially safe for teenagers. He can go to www.emcp.net/consumerreports a...
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This document was uploaded on 01/16/2014.

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