Suppose the demand function for cable TV service is given by QCTV = 15 - 0.25 × PCTV + 0.0005 × M + 0.3 × PSTV, QCTV is the quantity of cable TV demanded (thousands of households), PCTV is the price of cable TV, M is income and PSTV is the price of satellite TV service. All else equal, a $10 increase in the price of satellite TV will cause the quantity of cable TV demanded to:
A. decrease by 3,000 households.
B. increase by 3,000 households.
C. decrease by 5,000 households.
D. increase by 5,000 households.
B. increase by 3,000 households.
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If the Fed makes the quantity of money grow at the same rate as the growth rate of real GDP and velocity does not change, in the long run what happens to the price level and the inflation rate?
What will be an ideal response?
If Cruise the World is in tacit collusion with three smaller cruise firms and Cruise the World consistently makes price changes that the other three firms then also make, this is an example of ________ by Cruise the World.
A) a precommitment B) price leadership C) a meet-the-competition clause D) a meet-or-release clause
Which nation is one of the few African island nations to encourage international trade in government-supported special economic zones (SEZ)?
a. Madagascar b. Mali c. Mauritania d. Mauritius
Refer to the table below. If demand increased by 100 units at each price level, and the government set a price ceiling of $40, then there will be:
Answer the question based on the following supply and demand schedules in units per week for a product.
A. A shortage
B. A surplus
C. No shortage or surplus
D. Decrease in supply