Firms will sometimes not raise their prices, even when there is a large increase in demand for their products because they fear consumers will consider the price increases unfair.
a. true
b. false
a. true
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An individual seller in perfect competition will not sell at a price lower than the market price because
A) the seller can sell any quantity she wants at the prevailing market price. B) demand for the product will exceed supply. C) the seller would start a price war. D) demand is perfectly inelastic.
A normal good is a good for which demand increases as the
a. income of demanders increases b. price of the good increases c. price of close substitutes decreases d. total number of consumers decreases e. supply of the good increases
Exhibit 19-1 Balance sheet of First Iliad State Bank Assets Liabilities Required reserves$ 1,000,000 Demand deposits$10,000,000 Excess reserves0 Loans$ In Exhibit 19-1, if the required reserve ratio is raised to 15 percent, First Iliad State will have to convert loans worth:
A. $9,000,000 to required reserves. B. $1,500,000 to required reserves. C. $500,000 to required reserves. D. $1,000,000 to required reserves.
In 2015, the fraction of fatal traffic accidents involving at least one person with blood alcohol level above the legal limit is approximately
A. 31%. B. 5%. C. 20%. D. 10%.