Arbitrage in foreign exchange and gold are both common as buyers can bargain with the sellers on the market price
Indicate whether the statement is true or false
F
You might also like to view...
There are only two firms in an industry with demand curves q1 = 30 - P and q2 = 30 - P. Both have no fixed costs and each has a marginal cost of 10 per unit produced
If they behave as profit maximizing price takers, each produces 10 units and sells them at a price of 10 so that each firm makes zero economic profits. If they form a cartel, their inverse demand curve is A) Q = 30 - P. B) Q = 60 - 2P. C) P = 60 - 2Q. D) P = 30 - Q/2.
An "all you can eat" restaurant illustrates the economic principle:
a. of consumers' inability to maximize their total utility. b. that economic theory clearly breaks down under certain circumstances. c. that marginal utility is always positive. d. that consumers will stop eating when marginal utility is zero. e. that consumers will stop eating when total utility is zero.
The ratio between the percentage change in the quantity demanded (Qd) or supplied (Qs) and the corresponding percentage change in price is called:
a. price elasticity. b. cost elasticity. c. demand elasticity. d. supply elasticity.
Suppose the Pleasant Corporation cuts the price of its American Girl dolls by 10 percent, and as a result, the quantity of the dolls sold increases by 25 percent. This indicates that the price elasticity of demand for the dolls over this range is
a. 2.5. b. 0.4. c. 0.5. d. 5. e. inelastic.