You manage a popular nightclub and lately revenues have been disappointing. Your bouncer suggests that raising drink prices will increase revenues, but your bartender suggests that decreasing drink prices will increase revenues. You aren't sure who is right, but you do know that:
A) your bouncer thinks the demand for drinks is inelastic, while your bartender thinks the demand for drinks is elastic.
B) both the bouncer and bartender think the demand for drinks is inelastic.
C) your bouncer thinks the demand for drinks is elastic, while your bartender thinks the
demand for drinks is inelastic.
D) both the bouncer and bartender think the demand for drinks is elastic.
A) your bouncer thinks the demand for drinks is inelastic, while your bartender thinks the demand for drinks is elastic.
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Relative to the short-run demand for gasoline, the long-run demand for gasoline is
A) probably more elastic since people need time to change automobiles and driving habits. B) probably less elastic since people need time to change automobiles and driving habits. C) probably more elastic because people can hoard this good. D) probably less elastic because people cannot store this good.
M1 includes savings accounts
a. True b. False Indicate whether the statement is true or false
Exchange rates determined by the laws of supply and demand are called: a. equilibrium exchange rates. b. fixed exchange rates
c. dirty exchange rates. d. floating exchange rates.
Crowding-out occurs when
A. workers lose jobs as a result of anti-inflationary fiscal policies. B. the federal government engages in bond sales to finance its budget deficit. C. the Congress enacts budget cuts to balance the budget. D. tax revenues rise more slowly than anticipated, resulting in the need to cut government spending.