Suppose that Starbucks reduces the price of its premium coffee from $2.20 to $1.80 per cup, and as a result, the quantity sold per day increased from 350 to 450 . Over this price range, the price elasticity of demand for Starbucks coffee is:
a. 0.40.
b. 0.80.
c. 1.25.
d. 2.50.
c
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Rent seeking is the term given
a. to an attempt by firms to create a profitable monopoly even though resources may be wasted in the process. b. to filing a lawsuit, which wastes resources, in the hope of obtaining monetary gain or a strategic market position. c. to attempts by firms to obtain earnings without contributing to production. d. All of the above are correct.
Supply-side macroeconomic policy is based on the idea that an increase in the aggregate supply curve will result from a decrease in business taxes and deregulation, resulting in both an increase in real GDP and an increase in the overall price level
Indicate whether the statement is true or false
Suppose individuals expect future output to be lower and future interest rates to be lower. Given this information, how will individuals alter consumption in the current period? Explain
What will be an ideal response?
An investor who owns preferred stock has
A) regular voting rights. B) preferential treatment in the payment of dividends. C) the same rights as a bond holder. D) unlimited liability for the debts of the firm.