Demand is elastic if the price elasticity of demand is greater than 1
a. True
b. False
Indicate whether the statement is true or false
True
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Hermione and Ron are at a sweet shop in London. Hermione looks at the prices of ice cream and chocolate bars and says to Ron: "I can tell you what your marginal rate of substitution between ice cream and chocolate bars is at your best affordable
point." "No, you can't," says Ron. "You don't know my preferences and how much money I have." "I don't need to know all this because I know the prices," Hermione replies. Is she right? Explain.
The European Union became an economic union with the implementation of which treaty?
A) Treaty of Rome B) Single Europe Treaty C) Delor's Agreement D) Treaty on European Union E) Schengen Agreement
Retailers do not find it profitable to engage in promotional activities because
a. They cannot reap the full benefits of the promotion b. They do not have to share the benefits of the promotion with the manufacturer c. They are unaware of competing retailers' ability to "free ride" on their efforts d. All of the above
In an expanding economy,
a. prices rise faster than costs. b. costs rise faster than prices. c. profit margins decrease. d. interest rates fall.