Erin reduces the price of her handmade boxes by 10 percent. The following month the sale of this product increases 9 percent. As a result, Erin’s income for this month most likely ______.
a. decreased slightly
b. decreased sharply
c. increased slightly
d. increased sharply
a. decreased slightly
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Which type of unemployment is associated with the slump in aggregate demand that accompanies a recession?
A) structural unemployment B) cyclical unemployment C) expansionary unemployment D) frictional unemployment
Refer to the scenario above. The demand for Go!'s soccer balls is 2,500 units if ________
A) the price charged by Sporty is higher than the price charged by Go! B) the price charged by Go! is higher than the price charged by Sporty C) the price charged by Sporty is equal to the price charged by Go! D) the price charged by Go! is higher than the cost of producing a ball
The reason why weaker firms accept price leadership is that they
a. maximize profit that way b. get an equal share of the market c. can collude to eventually challenge the dominant firm d. are protected from price competition e. can lower their prices to increase market share without upsetting the price leader
Business optimism about future sales tends to __________ investment expenditures, shifting the AD curve to the __________
A) increase; left B) increase; right C) decrease; left D) decrease; right