Firm's should lower the price of their goods
a. If the demand for the product is elastic
b. If it acquires a firm selling a complement good
c. If it acquires a firm selling a substitute good
d. Both a and b
d
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The indifference curve in the above figure
A) could illustrate a person's preferences for identical computer disks made by two different companies. B) could illustrate a person's preferences for right-handed and left-handed gloves. C) has a marginal rate of substitution that at first decreases and then increases. D) None of the above statements is correct.
To improve living standards, policymakers should
a. impose restrictions on foreign competition. b. formulate policies designed to increase productivity. c. impose tougher immigration policies. d. provide tax breaks for the middle class.
A binding price ceiling that could be set in the market in the graph shown would be:
A. $15. B. $8. C. $11. D. $30.
A rightward shift in aggregate demand will cause an increase in the price level and no change in output if aggregate supply is
A. Downward-sloping to the right. B. Horizontal. C. Upward-sloping to the right. D. Vertical.