A business doubled the price of a product in order to increase profits. Which of the following scenarios might have occurred?
a. A sharp increase in revenues demonstrated the elasticity of the product.
b. A dramatic decline in revenues demonstrated the elasticity of the product.
c. A dramatic decline in revenues demonstrated the inelasticity of the product.
d. A small increase in revenues demonstrated the unit elasticity of the product.
Ans: b. A dramatic decline in revenues demonstrated the elasticity of the product.
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Answer the following statement true (T) or false (F)
Chess is an example of a
A) game with perfect information. B) game with imperfect information. C) game with incomplete information. D) static game.
Junk bonds are securities with
a. low risk and low yield. b. high risk and high yield. c. low risk and high yield. d. high risk and low yield.
Money
a. is more efficient than barter. b. makes trades easier. c. allows greater specialization. d. All of the above are correct.