A rightward shift in a demand curve and a leftward shift in a supply curve both result in a
A. Lower equilibrium quantity.
B. Higher equilibrium quantity.
C. Lower equilibrium price.
D. Higher equilibrium price.
Answer: D
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Promotional pricing would best be categorized as a form of:
A) first-degree price discrimination. B) second-degree price discrimination. C) third-degree price discrimination. D) no price discrimination.
Which of the following statements is true?
A) If marginal costs are constant, then it is optimal to advertise until the last dollar spent on advertising generates one additional dollar of sales. B) If the demand curve shifts leftward as the advertising expenditure increases, then the advertising elasticity of demand is positive. C) If the advertising elasticity of demand declines and consumer demand becomes more price elastic, then the optimal advertising-to-sales ratio declines. D) If the advertising elasticity of demand is positive, then the demand curve must be upward sloping.
Government policies that heavily tax some activities while subsidizing others and that fix or control interest rates will result in
a. higher productivity of investment. b. lower productivity of investment. c. no change in the productivity of investment. d. a greater level of investment.
Sellers respond to a surplus by cutting their prices
a. True b. False Indicate whether the statement is true or false