When the price of one product falls,
a. consumers' real income will increase.
b. consumers will buy less of that product.
c. consumers will not change their buying patterns.
d. consumers' real income will decrease.
a
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Comment on the following statement and evaluate it. "Differentiating a product separates you from your competitors so the market will see you as delivering unique benefits. But you don't want to be too different."
What will be an ideal response?
Suppose Alice is deciding whether or not to go to a New York Giants game. Alice's enjoyment and thus decision, depends upon two uncertain events that are out of her control: whether the Giants win and whether it snows. She will be happiest if the Giants win and it does not snow. The newspaper reports a 35% chance for snow and the Giants record suggests a 40% chance of winning. The probability that the Giants win and that it does not snow is:
A. 75%. B. 5%. C. 26%. D. 35%.
Real GDP is another term for
a. current dollar GDP. b. actual GDP. c. constant dollar GDP. d. tangible GDP.
Jonathan sells tacos in the main plaza of a town in Idaho. There are three other vendors in the other corners of the plaza selling tacos of the same quality. If the market demand for tacos decreases in such a way that Jonathan's total revenue is less than his total cost, he will: a. raise the price of tacos to increase his revenue. b. reduce costs to increase his profit margin
c. shut down his business immediately. d. produce the quantity that minimizes his losses.