Recall the Application about food and drink pricing during "happy hour" at bars and restaurants to answer the following question(s).Recall the Application. In a market subject to monopolistic competition, a restaurant's rational response to more elastic demand is to increase its price.
Answer the following statement true (T) or false (F)
False
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When you join the local organic food market and then buy produce each month, money is used as
A) only a store of value. B) only a unit of account. C) a medium of exchange and a store of value. D) a medium of exchange and a unit of account. E) a store of value and a unit of account.
If the Canadian dollar depreciates, holding other things constant, it makes Canadian imports
a. More expensive for Canadian customers b. Less expensive for Canadian customers c. Neither more or less expensive for importers d. None of the above
Which of the following is a term for an innovative new product or production technology which disrupts the status quo in a market, leading the innovators to earn more income and profits and the other firms to lose income and profits, unless they can come up with their own innovations?
a. disruptive technological change b. disruptive market change c. disruptive trade change d. disruptive transfer change
When a bank makes loans with excess reserves, it
a. creates money. b. destroys money. c. alters the composition of M1. d. leaves the money supply unchanged.