After running a promotional campaign, the owners of a local shoe store decided to decrease the prices for the shoes sold in their store. One can imply that
a. The promotional expenditures made the demand for their shoes more elastic
b. The promotional expenditures made the demand for their shoes more inelastic
c. The promotional expenditures has no effect on the shoe demand elasticity
d. The owners got it wrong. To cover the promotional expenses, they should have raised the prices.
a
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Net exports of goods and services increase when
A) exports of goods and services decrease and imports of goods and services do not change. B) consumption expenditure increases. C) exports of goods and services increase and imports of goods and services do not change. D) consumption expenditure decreases. E) imports of goods and services increase and exports of goods and services do not change.
Refer to Figure 13-2. Ceteris paribus, an increase in the labor force would be represented by a movement from
A) SRAS1 to SRAS2. B) SRAS2 to SRAS1. C) point A to point B. D) point B to point A.
The federal government and some state governments levy taxes on specific goods such as gasoline, cigarettes, and beer. These are known as
A) sin taxes. B) sales taxes. C) specific taxes. D) excise taxes.
In the late 1990s, Brazil decided to reduce the value of its currency, the real, in order to boost exports and help the economy to move out of a recession. Argentina, the main trade competitor of Brazil in various products, was immediately affected by Brazil's decision, since it would:
A. decrease Argentina's imports and decrease Argentina's trade deficit. B. increase Argentina's exports and decrease Argentina's trade deficit. C. decrease Argentina's exports and increase Argentina's trade deficit. D. increase Argentina's imports and decrease Argentina's trade deficit.