You are the sales manager for a software company and have been informed that the absolute value of the price elasticity of demand for your most popular software is less than 1. To increase total revenues from that product, you should
A. hold the price of the software constant.
B. increase the supply of the software.
C. increase the price of the software.
D. decrease the price of the software.
Answer: C
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In listing both the amount and cost of Wal-Mart's 2014 sales, this Application is addressing the economic concept of
A) chain-weighted indexes. B) value added. C) real versus nominal GDP. D) GDP as a measure of welfare.
Monetarist economists might conclude that the accelerator hypothesis supports their position via fiscal policy since
A) the gap between the desired capital stock and the existing capital stocks is closed slowly. B) a change in expected sales will not increase output. C) V? will be smaller than expected. D) All of the above are correct.
Lyndon Johnson’s “War on Poverty” started in the 1980s.
Answer the following statement true (T) or false (F)
An example of a heuristic is:
A. predatory lending. B. a framing device. C. common sense. D. a rule of thumb.