If Mary wants to use advertising to reduce the elasticity of demand for her dry cleaning services, she should make sure the advertising:
a. clearly states the prices she charges
b. shows that she is producing a product like the other dry cleaners in town.
c. shows why her services are truly different from the other dry cleaners in town.
d. does none of the above.
c
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The ________ effect refers to the change in quantity demanded for a good that results from the effect of a change in the good's price on consumer's purchasing power
A) substitution B) population C) ceteris paribus D) income
An increase in credit market frictions
A) decreases labor supply. B) decreases labor demand. C) decreases consumption demand. D) decreases investment demand.
Wages in the United States are higher than wages in China primarily because
a. worker productivity is higher in the United States. b. the United States has more people and, therefore, a larger number of skilled workers. c. in the United States, less capital is required per employee. d. China has more natural resources that employees can work with.
The supply curve of truck drivers is upward sloping and demand curve is downward sloping. A reduction in the price of hauling freight by truck relative to the price of hauling freight by rail will ____ the equilibrium wage of truck drivers and ____ the number of drivers employed.
A. decrease; decrease B. decrease; increase C. increase; decrease D. increase; increase