If advertising makes a firm's demand curve more inelastic, it is probably because
a. the advertising backfired
b. the goods advertised are no longer differentiated
c. competitors raised their prices in response to the firm's advertising
d. brand loyalty to the firm's good increased
e. quality changes make the good more attractive
D
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In the United States, money supply is most commonly referred to as ________
A) M1 B) M2 C) M3 D) M4
Income inequalities are greatest in
A. Countries with many factors of production. B. Rich countries. C. Poor countries. D. Highly developed countries.
If the elasticity of demand for sugar cookies is 2.5, then a 10% change in price will lead to a 5% change in quantity demanded.
Answer the following statement true (T) or false (F)
Excess demand occurs:
A. when price is above the equilibrium price. B. whenever the market is in equilibrium. C. when price is below the equilibrium price. D. whenever the market is not in equilibrium.