If the price elasticity of demand is 1.5, and a firm raises its price by 20 percent, the quantity sold by the firm will, ceteris paribus:
A. Rise by 13.3 percent.
B. Fall by 13.3 percent.
C. Rise by 30.0 percent.
D. Fall by 30.0 percent.
Answer: D. Fall by 30.0 percent.
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If the 4 largest cereal companies' total sales are $19 billion, and the industry's total sales are $55 billion then the Four-Firm Concentration Ratio is
A. 34.55%. B. 2.89%. C. 28.95%. D. 0.35%.
For a perfectly competitive firm with a known marginal cost and random demand, as the expected marginal revenue increases, the profit-maximizing quantity ________.
A) approaches zero B) increases C) does not change D) decreases
A decline in aggregate demand is analogous to an upward movement along the short-run Phillips curve
a. True b. False Indicate whether the statement is true or false
The Fed's purchase and sale of government securities is known as
a. margin operations. b. open market operations. c. bank reserve operations. d. cash management operations.