True and False question: (I will be grateful if you could give a
short explanation of the answer to each question.)
- In an English auction, the equilibrium price of a piece of art
is determined by the highest bid.
-
True
(b) False
- The only reason people go to the opera is to appreciate the
show.
-
True
(b) False
- Perfect competition is a good model to explain the market for
art.
-
True
(b) False
- Works produced by an artist will lose their value after his
death unless he is well-known during his life-time.
-
True
(b) False
- A profit-maximizing museum will set its admission price at a
point where the demand is inelastic.
-
True
(b) False
- The cross-elasticity of demand between CDs and the subscription
price for online music is positive.
-
True
(b) False
- The demand for expensive cultural goods may contain an element
of conspicuous consumption.
-
True
(b) False
- If the income elasticity of demand for a cultural product is
positive but less than one, an increase in the consumer’s income
will bring about an increase in the proportion of his income spent
on the product.
-
True
(b)
False
- The expression “De gustibus non est disputandum” suggests that
culture is a shared phenomenon.
(a)True
(b) False
- Bonnie is a music lover. She used to go to a concert only once
a year because she had to spend most of her budget on rent and
food. Two months ago, she was given a promotion and her salary
doubled. She started going to a concert every week. The change in
her behaviour can be explained by a shift in her demand curve for
concerts.
-
True
(b) False