An owner of local salon realized that by decreasing the prices for haircuts, his revenue increased. This implies that
a. The demand for haircuts is elastic
b. The demand for haircuts is inelastic
c. The demand for haircuts is unitary elastic
d. The demand for haircuts is perfectly elastic
a
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In the United States the system most generally used for assigning tasks and distributing benefits
A) employs continuing bids and offers among individuals. B) operates without the use of money prices. C) presupposes shifting and uncertain property rights or "rules of the game." D) takes the place of the supply-and-demand process. E) was designed by the authors of the Federal Constitution.
The segmented markets theory can explain
A) why yield curves usually tend to slope upward. B) why interest rates on bonds of different maturities tend to move together. C) why yield curves tend to slope upward when short-term interest rates are low and to be inverted when short-term interest rates are high. D) why yield curves have been used to forecast business cycles.
Management structures that include money market funds and bond funds in addition to stock funds are known as
A) exchange-traded funds. B) dealers. C) brokers. D) families of mutual funds.
The __________ "Hausbank" handles all the external financing for a firm
A) Japanese B) German C) Swedish D) British