1. A good with a postive network effect a. likely to be in a surplus more than o

ID: 1142899 • Letter: 1

Question

1. A good with a postive network effect

a. likely to be in a surplus more than other goods

b. will have more elastic demand than it would have without the network effect

c. rreqiures a group of snobs or else no bandwagon effect can be made

d. none of the above

2. A good with a negative network effect

a. is more likely to be in shortage than other goods

b. is one such demand will increase once other people stop wanting it.

c. cannot be profitable for a business to provide because the negative network will offset revenues that would be otherwise obtained.

d. is also called a snob good

3. There would never again be traffic if

a. driving was a social good

b. there was equilibrium pricing for roadways

c. none of the above

1. Option d.

2. Option d.

3. Option c.

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.