In general, the smaller the price elasticity:
a. the smaller the responsiveness of price to changes in quantity.
b. the smaller the responsiveness of quantity to changes in price.
c. the larger the responsiveness of price to changes in quantity.
d. the larger the responsiveness of quantity to changes in price.
b
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Which of the following acts prohibits two competitors from merging with one another for the purpose of reducing competition?
A) the Sherman Act B) the Clayton Act C) the Federal Trade Commission Act D) the Robinson-Patman Act
Which of the following statements is true?
A) Network effects act as barriers to entry in a market. B) Economies of scale act as incentives for new firms to enter a market. C) If a firm is enjoying economies of scale, then its product must have network effects. D) If a firm's product has network effects, then the firm must be enjoying economies of scale.
In periods when prices are falling, on average,
A) real GDP will grow as fast as nominal GDP. B) real GDP will grow slower than nominal GDP. C) real GDP will grow faster than nominal GDP. D) one cannot calculate real GDP.
Suppose we want to know how much money your grandparents would have to earn now to have purchasing power equivalent to their income in 1969. We could:
A. translate their nominal income today into 1969 dollars. B. take a ratio of their income today with their income from 1969. C. translate their nominal income in 1969 into constant, real dollars of today. D. None of these statements is true.