A discount shoe manufacturer's advertisement suggests that they are almost as good as the name brands but better value. The shoe manufacturer believes that the advertisement will make
a. The demand for its product less elastic
b. His customers less price sensitive
c. Him able to raise prices
d. None of the above
d
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Under the current structure of Medicare, the movement of the baby boom generation into the retirement phase of life will
a. increase the demand for medical services and the share of those services financed by third parties. b. push both healthcare prices and expenditures upward. c. cause Medicare expenditures to increase and necessitate the need for higher taxes to finance the program. d. do all of the above.
Economists refer to the inputs that firms use to produce goods and services as
a. derived factors. b. derived resources. c. factors of production. d. instruments of revenue.
Two members of the Kenyan parliament from coffee-growing areas said that no firm should have a monopoly to market Kenyan coffee. The retail coffee company Tetu Coffee has sparked a storm in the industry by promising to earn the country Sh400 billion annually if given exclusive licenses to market Kenyan coffee. The members of parliament said the coffee bean farmers should be free to sell their beans to the highest bidder. Are the farmers in Kenya justified in being upset with having a single coffee buyer?
A. Maybe; the single buyer may reduce price but also will raise the quantity of coffee beans. B. Yes; the single buyer will reduce both the quantity and price of coffee beans. C. No; the single buyer will increase the price and quantity of coffee beans. D. Maybe; the single buyer may reduce quantity but also raise price of coffee beans.
In the short run, when the economy is at equilibrium, there (2)
What will be an ideal response?