QUESTION 15 Which of the following statements is true of price-makers? O The dem

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QUESTION 15 Which of the following statements is true of price-makers? O The demand curve that price-makers face is upward sloping O Price-makers set the price of a good after they determine how much to produce. O Price-makers set the price of a good as high as they want to. O The supply curve of price-makers is downward sloping. QUESTION 16 If pizza and tacos are substitutes, a decrease in the price of tacos would lead to a decrease in the quantity demanded of pizza decrease in the demand for pizza decrease in the price of pizza. All of the above. Click Save and Submit te same and submit. Click Save All Answers to save all answers

Explanation / Answer

1. The correct statement about price makers is that Price maker sets the price of good after they determine how much to produce. A price maker is a monopolistic company that can dictate the prices of its goods because there are no substitutes for it.

2. If Pizza and tacos are substitutes, a decrease in prices of tacos would lead to all of the above i.e. decrease in quantity demanded for pizza, decrease in demand for pizza and decrease in the prices for Pizza.

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