Some luxury product manufacturers will purposefully raise prices on their goods in order to reduce sales volume
This strategy may successfully increase sales revenue if the luxury goods are subject to the ________ effect and have relatively ________ demand. A) bandwagon, elastic
B) bandwagon, inelastic
C) snob, elastic
D) snob, inelastic
D
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If the government increases its purchases of goods and services by $3,000 and the MPC is 0.8, GDP and income will eventually increase by
A) $2,400. B) $6,000. C) $15,000. D) $24,000.
The above figure illustrates a perfectly competitive firm. Curve B represents the
A) MR curve. B) ATC curve. C) MC curve. D) AVC curve. E) AFC curve.
If marginal cost is increasing then: a. marginal product must be increasing
b. average variable cost must be increasing. c. average total cost must be increasing. d. none of the above must necessarily be true.
The rise in unemployment that occurs because of a recession is known as cyclical unemployment, because it is closely tied to the ______________.
a. natural rate of unemployment b. business cycle c. supply curve d. labor supply