What is the relationship between price elasticity of demand and total revenue for the firm?
What will be an ideal response?
If demand is elastic then price and total revenue are inversely related, while if demand is inelastic, price and total revenue are directly related, and if demand is unitary elastic, then price and total revenue are unrelated.
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The increased use of credit cards leads to
A) no movement along the demand curve for money nor a shift in the demand curve. B) a leftward shift in the demand for money curve. C) a rightward shift in the demand for money curve. D) a movement downward along the demand for money curve. E) a movement upward along the demand for money curve.
Starting from full employment output, fiscal policy will be completely crowded out in real terms, even with __________ LM curve, so long as prices are __________
A) a vertical; flexible B) a vertical; fixed C) an upward-sloping; flexible D) an upward-sloping; fixed
The perpetual state of insufficiency of resources to satisfy people's unlimited wants is:
a. apparent only in poor countries. b. completely unrealistic. c. present in modern economies, but not in the past. d. the definition of scarcity.
Suppose you purchase a put option to sell General Motors common stock at $80 per share in March. The current price of GM stock is $83 and the time value of the option is $1. What is the intrinsic value of the option?
What will be an ideal response?