Consider the market for bicycles. If a dealer cuts prices by 10 percent and sells 20 percent more bikes, then demand for bicycles is
a. inelastic, and total revenue will increase.
b. elastic, and total revenue will increase.
c. inelastic, and total revenue will decrease.
d. elastic, and total revenue will decrease.
b. elastic, and total revenue will increase.
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The lower the exchange rate today, ceteris paribus, the
A) greater is the expected profit from buying U.S. dollars today and holding them. B) smaller is the expected profit from buying U.S. dollars today and holding them. C) greater is the expected profit from buying foreign currency today and holding it. D) smaller the quantity of U.S. dollars demanded in the foreign exchange market today.
A consumer is currently spending all of her available income on two goods: music CDs and DVDs. At her current consumption bundle, she is spending twice as much on CDs as she is on DVDs. If the consumer has $120 of income and is consuming 10 CDs and 2 DVDs, what is the price of a DVD?
a. $4 b. $8 c. $12 d. $20
A theory predicts that the more a student studies, the higher his or her grades will be. This theory is
A) not falsifiable. B) falsifiable. C) too difficult a theory to test. D) inconsistent with the fact that some students study less than other students, yet receive higher grades. E) b and d
Refer to the information provided in Figure 6.6 below to answer the question(s) that follow.
Figure 6.6Refer to Figure 6.6. Bill's budget constraint was originally AD. If his new budget constraint is EF, then his income
A. increased. B. decreased. C. increased and the price of black beans price increased. D. increased and the price of bell peppers decreased.