Suppose that demand is inelastic within a certain price range. For that price range,
a. an increase in price would increase total revenue because the decrease in quantity demanded is proportionately less than the increase in price.
b. an increase in price would decrease total revenue because the decrease in quantity demanded is proportionately greater than the increase in price.
c. a decrease in price would increase total revenue because the increase in quantity demanded is proportionately smaller than the decrease in price.
d. a decrease in price would not affect total revenue.
a
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By definition, an inferior good is a
A) want that is not expressed by demand. B) normal substitute good. C) good for which demand decreases when its price rises. D) good for which demand decreases when income increases.
What explains the appreciation of the Japanese yen relative to the U.S. dollar from 1970 to the early 1990s?
A) High tariffs and restrictive quotas in the United States caused the value of the dollar to decline. B) Japanese productivity rose faster than U.S. productivity. C) U.S. consumers reduced their preferences for Japanese goods. D) Japanese inflation rose faster than U.S. inflation.
Credit Suisse, Goldman Sachs, and Lazard Freres are examples of
A) commercial banks. B) corporations. C) non-bank financial institutions, such as insurance companies, pension funds, and mutual funds. This includes investment banks, which specialize in underwriting sales of stocks and bonds by corporations and in some cases governments. D) central banks and other government agencies. E) non-profit organizations.
Which of the following is not money?
a. Checks b. Coins c. Federal reserve notes d. Debit cards e. Credit cards