The price of a new textbook increased by 25 percent and the price of a used textbook increased by 30 percent. What happened to the relative price of the new textbook?
A) It increased by 5 percent.
B) It increased, but we can't tell by how much without more information.
C) It decreased by 5 percent.
D) It decreased, but we can't tell by how much without more information.
D
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Firm A, Firm B, and Firm C are the exclusive producers of a satellite video technology that revolutionized television services. The companies have formed a cartel to limit production and fix prices to maximize profits for all members. In the given scenario, which of the following should be the ideal strategy for Firm A? a. Produce the agreed-upon quota while keeping track of the production
levels of the other members of the cartel. b. Produce less than the quota while raising its prices to keep demand high. c. Produce more than the quota while lowering its prices to capture a higher market share. d. Produce the agreed-upon quota while seeking to differentiate its product to capture a higher market share.
The inflation tax falls mostly heavily on
a. those who hold a lot of currency and accounts for a large share of U.S. government revenue. b. those who hold a lot of currency but accounts for a small share of U.S. government revenue. c. those who hold little currency and accounts for a large share of U.S. government revenue. d. those who hold little currency but accounts for a small share of U.S. government revenue.
Exhibit 2-2 Production possibilities curve
In Exhibit 2-2, the slope of the production possibilities curve indicates that the opportunity cost of:
A. coffee is constant. B. coffee is increasing. C. coffee is decreasing. D. corn is increasing.
A rightward shift in a demand curve and a leftward shift in a supply curve both result in a
A. Lower equilibrium quantity. B. Higher equilibrium quantity. C. Lower equilibrium price. D. Higher equilibrium price.