You own two different energy drink brands: "Blue Cow" and "600 minute energy.". If you reduce the price on "Blue Cow",
a. Sales of "Blue Cow" would increase, without any changes in sales for "600 minute energy."
b. Sales of both "Blue Cow" and "600 minute energy.". would increase
c. Sales of "Blue Cow" would increase, but the sales of "600 minute energy" would be cannibalized
d. Neither "Blue Cow" nor "600 minute energy" would see an increase in sales.
c
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The savings rate in an economy equals:
A) aggregate savings divided by GDP. B) GDP minus aggregate consumption. C) GDP divided by aggregate savings. D) aggregate savings multiplied by GDP.
If a firm offers a senior citizen discount,
A) the firm expects the average senior citizen to have a lower price elasticity of demand. B) the firm expects the average senior citizen to have a higher price elasticity of demand. C) senior citizens may be offended. D) it may be prosecuted for discrimination.
Which of the following best represents the effects of a decrease in the price of tomato juice, other things being equal?
a. An upward movement along the demand curve for tomato juice. b. A downward movement along the demand curve for tomato juice. c. A rightward shift in the demand curve for tomato juice. d. A leftward shift in the demand curve for tomato juice.
The income approach to measuring GDP:
A. uses the factors payments made by businesses to households to estimate GDP. B. ignores how income is earned and focuses instead on how it is used. C. adds up all household expenditures to calculate aggregate income and GDP. D. focuses on how income is spent.