Refer to Table 6-1. Suppose you own a bookstore. You believe that you can sell 40 copies per day of the latest John Grisham novel when the price is $35
You consider lowering the price to $25 and believe this will increase the quantity sold to 50 books per day. Compute the price elasticity of demand using the midpoint formula and these data. Select the correct implication from your work.
A) The demand for the John Grisham book is elastic. Revenue will rise if the price is lowered.
B) The demand for the John Grisham book is elastic. Revenue will fall if the price is lowered.
C) The demand for the John Grisham book is inelastic. Revenue will fall if the price is lowered.
D) The demand for the John Grisham book is inelastic. Revenue will rise if the price is lowered.
C
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A) farming B) diamonds C) athletic shoes D) soft drinks E) electricity distribution
A commitment device is:
A. an arrangement entered into by an individual with the aim of helping fulfill a plan for future behavior that would otherwise be difficult. B. a way to deal with time inconsistency. C. something that helps people conquer their vices. D. All of these are true.
In 2013, the U.S. spending on research and development was:
a. the lowest among developed countries b. more than any other country c. more than most countries, but not China d. consistent with spending on R&D in 2012
The above figure is referred to as a(n)
A. production possibilities curve. B. supply-demand curve. C. consumption curve. D. scarcity-shortage curve.