Grocery store chains advertise more than convenience stores because:
A) the advertising elasticity of demand is smaller for grocery store chains than for convenience stores.
B) convenience stores have more elastic demand for their products than grocery store chains.
C) the advertising elasticity of demand for convenience stores is near zero and is much smaller than for grocery store chains.
D) all of the above
E) none of the above
C
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Suppose a new technology is developed that increases the productivity of labor. You would expect
A. the wage rate to fall, since employers will want less labor. B. the demand for labor to fall. C. the demand for labor to rise. D. an increase in unemployment as firms replace labor with technology.
A common resource is best described as a resource where
A) there is a positive externality in consumption. B) there is a negative externality in consumption. C) there is a positive externality in production. D) there is a negative externality in production.
Explain the adjustment process in the money market that creates a change in the price level when the money supply increases
What are the five variables that will shift the demand curve?
What will be an ideal response?