If the interest rate falls, you would expect the price of any stock to

A. rise.
B. fall.
C. be unaffected.
D. fall to zero.


Answer: A

Economics

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Suppose a perfectly competitive industry is in long-run equilibrium. If a decrease in demand leads to a lower long-run price, we know that

A) this is a decreasing-cost industry. B) this is an increasing-cost industry. C) some firms will be losing money in the long run. D) after further adjustments, price will rise to its original level.

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To determine whether McDonald's hamburgers are in the same market as Domino's pizza, the criterion we use is their

a. price elasticities of demand b. price elasticities of supply c. income elasticities of demand d. cross elasticities e. equilibrium prices

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If a good has "snob appeal," consumers may purchases less when the price falls

a. True b. False Indicate whether the statement is true or false

Economics