If the Demand for Hockey Tickets Increases, Why Might One

question 131

Multiple Choice

If the demand for hockey tickets increases, why might one expect the salaries of hockey players to increase?

• A) because of the reduction in the supply of world class hockey players
• B) because of the demand for an input being a derived demand
• C) because of the change in the opportunity cost of building new arenas
• D) because of the principle of diminishing marginal product

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Definitions:

Budget Line

A graphical representation of all possible combinations of two goods that can be purchased with a given budget at fixed prices.

Shifting Outward

Refers to the expansion of production possibilities or outward movement of the production possibility frontier, indicating economic growth or improvement in resource availability.

Indifference Curves

Graphical representations showing different combinations of goods or services among which a consumer is indifferent.

Budget Lines

A graphical representation depicting all combinations of goods and services that a consumer can afford given their income and the prices of goods.