Refer to the figure below. Suppose this demand curve shows the demand for lattes at a single coffee shop that charges $2.00 for a latte. If the manager wants to increase total revenue, what should the manager do? 
A. Increase the price from $2.00 to $2.50.
B. Reduce the price from $2.00 to $1.00.
C. Reduce the price from $2.00 to $1.75.
D. Increase the price from $2.00 to $3.00.
Answer: C
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Refer to Figure 6-12. The diagram shows two supply curves, SA and SB. As price rises from P0 to P1, which supply curve is more elastic?
A) They are equally inelastic. B) SB C) They are equally elastic. D) SA
For direct price discrimination to work effectively
a. The low-valued customers should not be able to engage in arbitrage b. You need to charge the same price to the different groups c. Both groups should have the same elasticity of demand d. None of the above
The empirical evidence on the velocity of money, specifically M2, shows it to be relatively stable over the long run. Does this imply that monetary policymakers really should focus on the growth rate of money for economic stability?
What will be an ideal response?
The expected value of a future payment differs from the present discounted value in that the expected value
A. Uses a lower interest rate in its calculation. B. Assumes that future payments take place over a longer period of time. C. Takes into account the possibility of nonpayment. D. Uses a higher interest rate in its calculation.