The price elasticity of demand for new stereos is –2 . Suppose a stereo store wishes to increase its sales by 15 percent. What should the firm do?
What will be an ideal response?
[15]/ [percentage change in price] = -2 . Therefore, the store should lower the price by 7.5 percent.
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Refer to Figure d, which illustrates a game played by Travis and Darren. Travis's dominant strategy is:
A. North.
B. South.
C. East.
D. West.
The deficit in the U.S. current account in recent years has been reinforced by a deficit in the U.S. capital account
Indicate whether the statement is true or false
Assume an equilibrium price of $7 and equilibrium quantity of 8 units at demand D and supply S2 in the graph shown. Total surplus is:
A. $12. B. $32. C. $16. D. $56.
A graph that shows the value of an economic variable for different groups in a population at a given time is called a
A) pie chart. B) cross-section graph. C) scatter diagram. D) time-series graph. E) fixed-time diagram.