The Wii Is a Wildly Popular Home Video Game Console

question 3

Multiple Choice

The Wii is a wildly popular home video game console released by Nintendo. The Wii system was first available in the U.S. in November, 2006 and has sold more than 30 million units as of August 2010. The Wii retails for $199. Suppose Ahmed is willing to pay $230, Lana is willing to pay $175, and Bodie is willing to pay $300 for a Wii. Who will purchase a Wii?

• A) Ahmed and Bodie
• B) Ahmed
• C) Lana
• D) Ahmed, Bodie, and Lana

---

Definitions:

Friedman and Phelps

Economists known for their work on the natural rate of unemployment and expectations in macroeconomics, challenging the traditional Phillips curve concept.

Phillips Curve

An economic concept that depicts an inverse relationship between the rate of unemployment and the rate of inflation in an economy over time.

Phillips Curve

An economic concept that demonstrates an inverse relationship between the rate of unemployment and the rate of inflation within an economy.

Short-Run Aggregate Supply

The total supply of goods and services that firms in an economy plan on selling during a short period, assuming some prices/wages are sticky.