Firms should raise the prices on their goods
a. If the demand for the product is elastic
b. If it acquires a firm selling a complement good
c. If it acquires a firm selling a substitute good
d. Both a and c
c
You might also like to view...
By offering more generous unemployment insurance programs, European countries can expect
A) workers to gain new skills quickly in response to fluctuations in the labor market. B) longer periods of unemployment for their workers. C) to pay less in taxes than in the United States. D) shorter periods of unemployment for their workers.
The Taylor rule relates
a. inflation rates to unemployment rates. b. the federal funds rate to inflation and output rates. c. differences in the federal funds rate from its target to differences in inflation and unemployment from its target. d. differences in the federal funds rate from its target to differences in inflation and unemployment from its target. e. All of the above
An increase in the amount of excess reserves held by a bank helps to increase the economy's money supply
a. True b. False Indicate whether the statement is true or false
MC and MU are set equal to one another in a market economy because
A. producers and consumers are free to communicate with one another. B. producers and consumers both respond to the same price. C. consumers must accept the prices set by producers. D. producers must accept the price set by consumers.