Firms will sometimes not raise their prices, even when there is a large increase in demand for their products because they fear consumers will consider the price increases unfair.
a. true
b. false
a. true
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For a given domestic and foreign price level, a decrease in the nominal exchange rate ________ the real exchange rate.
A. decreases B. increases C. offsets any change in D. may either increase or decrease
Use the information in the following table to answer the next question.Money SupplyMoney DemandInterest RateInvestment (at interest rate shown)$400$6002%$7004005003600400400450040030053004002006200The equilibrium interest rate in this economy is ________.
A. 3% B. 4% C. 5% D. 6%
Juicy Couture has been successful in selling women's clothing using an unusual strategy
According to an article in the Wall Street Journal, the key to the firm's strategy is to "limit distribution to maintain the brand's exclusive cachet, even if that means sacrificing sales, a brand-management technique once used only for high-end luxury brands." In 2006, Juicy clothes were sold in only four department stores: Neiman Marcus, Saks, Bloomingdale's, and Nordstrom. In 2006, its sales have more than quadrupled since 2002. Source: Rachel Dodes, "From Track Suits to Fast Track," Wall Street Journal, September 13, 2006. How does limiting the number of stores in which Juicy's products are sold contribute to its success? A) It enables Juicy to price its products at a premium and differentiate them from lower-priced products. B) It helps establish Juicy's products as luxury items favored by the very wealthy. C) By sacrificing sales, the company was able to focus on producing high-quality products. D) Maintaining the exclusivity of a product increases the demand for the product.
In 1910, the largest U.S. industry as ranked by value added was
a. machinery. b. cotton goods. c. tobacco manufactures. d. railroad cars.