If the Celtics Sign Kevin Garnett to a Big Contract

question 15

Multiple Choice

If the Celtics sign Kevin Garnett to a big contract they may raise ticket prices because

• A) their average cost curve shifts up.
• B) their demand curve shifts right.
• C) their marginal cost curve shifts up.
• D) their fixed cost curve shifts up.

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Definitions:

Capitalist Economy

A financial system where capital goods are owned by individuals or corporations, with investment choices, prices, production, and goods distribution primarily influenced by competition within a free market.

Automatic Stabilizer

Economic policies and programs, like unemployment benefits, that automatically adjust to counteract economic fluctuations without additional government action.

Unemployment Compensation

Government-provided financial assistance to individuals who are unemployed and meet certain eligibility requirements.

Automatic Stabilizer

Economic policies and programs, such as unemployment insurance and progressive taxes, that automatically help stabilize an economy by reducing the severity of economic fluctuations without additional government intervention.