You are the brand manager of Crest toothpaste and you observe that when you increase the price of Crest, your total revenue increases. How is that possible?
What will be an ideal response?
The demand for Crest toothpaste must be inelastic, so that the percentage increase in price is greater than the percentage decrease in quantity demanded, thereby increasing the total revenue.
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Which of the following is not a store of value?
a. Dollar bills. b. Credit card. c. Coins. d. Gold.
Increasing the capital available to the workforce, holding other factors constant, tends to ________ total output while ________ average labor productivity.
A. decrease; increasing B. increase; not changing C. increase; decreasing D. increase; increasing
Which statement describes the advantage of operating a sole? proprietorship?
A. An important financial advantage in many sole proprietorships is the opportunity to share costs. B. In a sole? proprietorship, the owner and the business are legally inseparable. C. Sole proprietors have more privacy and generally are not required to report anything to anyone. D. Sole proprietorships are? liquid, which also helps give them a long life? span; when shareholders sell or bequeath their? shares, ownership simply passes to a new? generation, so to speak. E. Sole proprietorships have the ability to pool money by selling shares of stock to outside investors.
According to the real business cycle theory, which of the following would be a real disturbance to the economy?
A. increase in the labor force B. reduction in the money supply C. change in the required reserve ratio D. increase in the price level