If advertising makes demand of a product more elastic, it makes sense for a firm to
a. Decrease the price of the product
b. Increase the price of the product
c. Leave the price unchanged
d. None of the above
a
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Refer to Figure 3.1. What is the number of outcomes which represent Nash equilibria in this game?
A) 1 B) 2 C) 3 D) 4
If firms in a competitive industry independently operate to maximize profits, the ________ are eventually equalized across the firms
A) total costs B) marginal costs C) profits D) revenues
If the trade line that passes through the production point on the PPC has a slope that is shallower than the slope of the PPC at the same point, then
A) the country can get greater gains from trade if it moves production away from the vertical axis. B) the country can get greater gains from trade if it moves production toward the vertical axis. C) the country cannot improve on its gains from trade. D) There are no gains from trade in this example. E) There is not enough information to tell how it can improve its gains from trade.
If a tax is levied on the sellers of a product, then there will be a(n)
a. downward shift of the demand curve. b. upward shift of the demand curve. c. decrease in quantity demanded. d. increase in quantity demanded.