The speculative demand for money
varies inversely with the interest rate
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When the price of a video rental was $2.00, ticket sales at the local movie theatre averaged 180 admissions per night
Then the video store reduced the price of a video rental to $1, and the theatre manager reported that ticket sales had fallen to 126 per night. What is the approximate value of the cross price elasticity of demand between video rentals and theatre tickets? A) -0.53 B) +0.30 C) +0.53 D) +1.67
Discuss the relationship between U.S. competitiveness relative to other countries and standards of living in the United States
What will be an ideal response?
The producer price index is considered a good predictor of future consumer prices because increases in input prices:
A. are used by consumers to make decisions on what to buy. B. are accounted for in PPI, and therefore this automatically adjusts the CPI. C. are observed first in the PPI, adjusting the CPI downward. D. eventually make it to consumers when they buy the final product.
What is most likely to happen when firms in an import-competing infant industry are offered subsidies?
A. The firms will be able to charge a price equal to the world price and still earn a profit. B. The firms will face a perfectly inelastic demand curve. C. The firms will be able to sustain only if they charge a higher price than the foreign firms. D. The firms will suffer from diseconomies of scale.