Bundling
A) is when firms sell multiple separate goods together for a single price.
B) is where a firm wraps its fragile goods in special packaging and charges a higher price than if the goods are put into regular packaging.
C) increases transaction costs for consumers.
D) is illegal in most U.S. states.
A
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For nearly every year since 1970, the United States has:
A. imported more than it exported. B. exported more than it imported. C. imported about the same as it has exported. D. held to very isolationist trade policy.
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Which of the following describes a situation in which demand must be elastic?
a. The price of dish soap rises by 10 cents, and quantity of dish soap demanded falls by 50. b. The price of dish soap rises by 10 cents, and total revenue rises. c. A 20 percent increase in the price of dish soap leads to a 20 percent decrease in the quantity of dish soap demanded. d. Total revenue does not change when the price of dish soap rises. e. Total revenue decreases when the price of dish soap rises.