When Johanna cut prices in her jewelry store by 20 percent, the dollar value of her sales fell by 20 percent. This indicates that
a. demand was elastic.
b. demand was inelastic.
c. demand was unit elastic.
d. the demand curve was vertical.
d
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A monopolistically competitive firm ________
A) can increase price without losing all of its business B) loses all of its business if it increases price slightly C) faces a perfectly elastic demand curve D) faces a perfectly inelastic demand curve
A major function of incentive payments, guarantees, and signals is to enable markets to overcome the problem of
A) irrational forecasting. B) efficient forecasting. C) private information. D) public information.
Because knowledge capital is nonexcludable and nonrival, firms have an incentive to ________ the research and development of other firms
A) free ride on B) ignore C) not use D) make bids on
What is the "three-pronged approach" to organizing a banking union?
What will be an ideal response?