We would expect
A. the demand for Coca-Cola to be relatively more elastic than the demand for soft drinks in general.
B. no relationship between the price elasticity of demand for Coca-Cola and the price elasticity of demand for soft drinks in general.
C. the demand for Coca-Cola to be relatively more inelastic than the demand for soft drinks in general.
D. none of these to hold true.
Answer: A
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The demand for cars in a certain country is given by: D = 20,000 - P, where P is the price of a car. Supply by domestic car producers is: S = 5,000 + 0.5.If this economy is open to trade, and the world price of a car is $6,000, and the government imposes a quota allowing 3000 cars to be imported, then domestic price of the car will be ________.
A. $6,000 B. $5,000 C. $10,000 D. $8,000
Open-market operations, changes in reserve requirements, changes in the discount rate, and changes in the interest rate on reserves are known as
A) goals. B) intermediate targets. C) instruments. D) derivatives.
The total cost of producing a given level of output is
A) maximized when a corner solution exists. B) minimized when the ratio of marginal product to input price is equal for all inputs. C) minimized when the marginal products of all inputs are equal. D) minimized when marginal product multiplied by input price is equal for all inputs.
How do banks make profits?