You are the sales manager for a software company and have been informed that the price elasticity of demand for your most popular software is less than 1. To increase total revenues, you should:
A. increase the price of the software.
B. decrease the price of the software.
C. increase the supply of the software.
D. hold the price of the software constant.
Answer: A
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The theory of adaptive expectations holds that people form the most accurate possible expectations about the future using all information available to them
a. True b. False Indicate whether the statement is true or false
"The customer is always right" explains
a. the higher wages paid to members of a union. b. compensating differentials. c. persistent wage discrimination based on consumer preferences. d. All of the above are correct.
Recall the Application about the government of Mexico City repainting highway lane lines to transform a 4-lane highway into a 6-lane highway to answer the following question(s).When the government converted the highway from 4 lanes into 6 lanes, they claimed the capacity had increased by 50 percent. When the government switched the highway back from 6 lanes to 4 lanes, they claimed the capacity had been decreased by 33 percent. Had the government used the midpoint method, the percentage increase would have been ________ percent and the percentage decrease would have been ________ percent.
A. 33; 50 B. 33; 33 C. 40; 40 D. 50; 50
Which of the following is the least likely example of asymmetric information?
A. an insurance company and a client who just obtained a driver's license B. a seller of used cars and a prospective customer C. a seller of fresh fruit and a buyer D. a retailer of online music and a buyer