If demand is perfectly elastic, the absolute value of the price elasticity coefficient is
A) one.
B) infinity.
C) zero.
D) equal to the absolute value of the slope of the demand curve.
B
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The reason Airbus succeeded in the Brander Spencer example is that
A) Boeing made the first move in this strategic game. B) Europeans tend to be better strategists than corn-fed Americans. C) the Airbus actually was a better plane than the Boeing 747. D) U.S. laws actually prohibit U.S. exporters from bribing foreign officials. E) the subsidy removed the advantage that Boeing gained with their head start in production.
If the ________ of a forecast outweighs its ________, the forecast can ________ a firm's profit.
A) cost; benefit; double B) cost; benefit; increase C) benefit; cost; increase D) benefit; cost; decrease
A lower price level causes
a. the entire aggregate expenditure to shift up. b. the entire aggregate demand curve to shift to the right. c. a movement along a given aggregate demand curve. d. both a movement along a given aggregate demand curve and the entire aggregate expenditure to shift up.
Citizens Bank confronts a reserve requirement of 20 percent and currently holds millions of dollars in excess reserves. If a depositor withdraws $35,000 . the excess reserves of the bank will
a. decline by $7,000. b. decline by $35,000. c. decline by $28,000. d. increase by $7,000.